Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent.The real after- tax interest rate is
A) - 0.5 percent.
B) 2.0 percent.
C) 4.0 percent.
D) 3.5 percent.
E) 0.5 percent.
Correct Answer:
Verified
Q19: Choose the statement that is incorrect.
A)The debt-
Q20: Which of the following is a government
Q21: An increase in the tax on capital
Q22: Consider all the effects on fiscal policy.A
Q23: Consider all the effects of fiscal policy.An
Q25: If we compare Canada to France and
Q26: At the end of 2011, the government
Q27: The difference between the before- tax and
Q28: According to the Laffer curve, raising the
Q29: If the nominal interest rate is 11%,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents