In which of the following cases is the after-tax real interest rate highest?
a. inflation is 6%, the pre-tax real interest rate is 3%, and the tax rate is 20%.
b. inflation is 6%, the pre-tax real interest rate is 3%, and the tax rate is 25%.
c. inflation is 4%, the pre-tax real interest rate is 2%, and the tax rate is 20%.
d. inflation is 4%, the pre-tax real interest rate is 2%, and the tax rate is 25%.
a
You might also like to view...
Disintermediation resulted from
A) interest rate ceilings combined with inflation-driven increases in interest rates. B) elimination of Regulation Q (the regulation imposing interest rate ceilings on bank deposits). C) increases in federal income taxes. D) reserve requirements.
Which of the following statements is always true with respect to oligopolists?
a. They react slowly to actions taken by other firms b. They lower prices together c. They raise prices together d. They know with certainty what they other firms will do e. They take into consideration how other firms might react.
Which of the following is true?
a. The actual result of changing behavior following the rule of rational choice will always make people better off. b. The actual result of changing behavior following the rule of rational choice will never make people better off. c. In terms of the rule of rational choice, zero levels of pollution would be far too costly in terms of what we would have to give up to achieve them. d. The rule of rational choice implies that it is impossible to be too safe.
According to the textbook application, product remanufacturing
a. begins with the collection of used products b. involves the dismantling of used products c. comprises a small market of less than $5 million in revenues d. none of the above e. (a) and (b) only