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    Principles of Economics Study Set 8
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    Exam 30: Money Growth and Inflation
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    You Earn a Nominal Return of 6% on Your Savings
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You Earn a Nominal Return of 6% on Your Savings

Question 68

Question 68

Short Answer

You earn a nominal return of 6% on your savings and the tax rate is 20%. If the rate of inflation is 2%, what are the before-tax real interest rate and your after-tax rate of return?

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