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 3 percent; the tax rate is 25 percent.
b. Inflation is 1 percent; the tax rate is 50 percent.
c. Inflation is 1 percent; the tax rate is 55 percent.
d. Inflation is 4 percent; the tax rate is 10 percent.
b
You might also like to view...
In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would sell the product at the price
A) A. B) C. C) E. D) F.
The Fed's founders viewed the Fed as a means of maintaining the money supply during economic contractions and as a lender of last resort
a. True b. False Indicate whether the statement is true or false
In monopolistic competition as well as in monopoly,
a. price exceeds marginal revenue for each firm. b. profit is zero in a long-run equilibrium for each firm. c. entry and exit by firms are unrestricted. d. there are at most a few firms in each market.
Spending on programs that Congress authorizes ________ is known as discretionary spending.
A. by prior law B. on an annual basis C. on an off-budget emergency basis D. after approval from the Federal Reserve