Given a nominal interest rate of 6 percent, in which of the following cases would you earn the highest after-tax real rate of interest?
a. Inflation is 2.5 percent; the tax rate is 25 percent.
b. Inflation is 3 percent; the tax rate is 20 percent.
c. Inflation is 2 percent; the tax rate is 30 percent.
d. The after-tax real interest rate is the same for all of the above.
c
You might also like to view...
If real GDP per person was equal to $2,000 in 1900 and grew at a 1 percent annual rate, what would be the value of real GDP per person 100 years later?
A. $2,210 B. $4,000 C. $20,000 D. $5,410
Redland produced 10 million tonnes of wheat in a certain year using a given stock of capital and efficiency units of labor
It was able to increase production to 15 million tonnes within two years without any increase in its capital stock or the number of efficiency units of labor. Suppose wheat is the only good produced in Redland. What is likely to be the reason behind the increase in production? Explain with a suitable diagram.
In a representative democracy, some responsibility for government extends to all citizens
a. True b. False Indicate whether the statement is true or false
The CPI in November 2016 was equal to 241.4. This means that prices in November 2016 were
A. 241.4% higher than in 1982-1984. B. 120.7% higher than in 1982-1984. C. 2.414% higher than in 1982-1984. D. 141.4% higher than in 1982-1984.