Given a Nominal Interest Rate of 6 Percent,in Which Case

Multiple Choice

Given a nominal interest rate of 6 percent,in which case would you earn the lowest after-tax real rate of interest?

A) Inflation is 4 percent; the tax rate is 25 percent.
B) Inflation is 3 percent; the tax rate is 20 percent.
C) Inflation is 2 percent; the tax rate is 15 percent.
D) The after-tax real interest rate is the same for all of the above.