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With a Nominal Interest Rate of 8%,an Expected Inflation Rate

Question 61

Multiple Choice

With a nominal interest rate of 8%,an expected inflation rate of 3%,and interest income taxed at a 25% rate,what is the expected after-tax real interest rate?


A) 5%
B) 3.75%
C) 3%
D) 1%

Correct Answer:

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