If your after-tax expected real interest rate is 3 percent on a one-year bond that pays 4 percent interest, what is the expected inflation rate if you face a tax rate of 20 percent?
A)0.0 percent
B)0.2 percent
C)2.0 percent
D)20.0 percent

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The Answer of If your after-tax expected real interest rate is 3 percent on a one-year bond that pays 4 percent interest, what is the expected inflation rate if you face a tax rate of 20 percent?
A)0.0 percent
B)0.2 percent
C)2.0 percent
D)20.0 percent

If Your After-Tax Expected Real Interest Rate Is 3 Percent