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With a Nominal Interest Rate of 4%,an Expected Inflation Rate

Question 69

Multiple Choice

With a nominal interest rate of 4%,an expected inflation rate of 1%,and interest income taxed at a rate of 25%,what is the expected real after-tax interest rate?


A) 3%
B) 2%
C) 1%
D) 0%

Correct Answer:

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