Multiple Choice
You put money into an account and earn a real interest rate of 4 percent. Inflation is 2 percent, and your marginal tax rate is 25 percent. What is your after-tax real rate of interest?
A) 1.5 percent
B) 2.5 percent
C) 5.0 percent
D) 4.5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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