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Assume a Nominal Interest Rate of 8 Percent,an Inflation Rate

Question 13

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Assume a nominal interest rate of 8 percent,an inflation rate of 3 percent,and a marginal tax rate of 25 percent.Calculate the after-tax nominal return and after-tax real return.According to supply-side economics,which of these matter for savings and investment decisions.

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After-tax nominal return= [8 percent * (...

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