Multiple Choice
Given a nominal interest rate of 7 percent,in which of the following cases would you earn the lowest after-tax real interest rate?
A) Inflation is 1 percent,and the tax rate is 10 percent.
B) Inflation is 2 percent,and the tax rate is 15 percent.
C) Inflation is 3 percent,and the tax rate is 20 percent.
D) Inflation is 4 percent,and the tax rate is 25 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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