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If the Nominal Return Is Constant, the After-Tax Real Rate

Question 21

Multiple Choice

If the nominal return is constant, the after-tax real rate of return


A) declines as the inflation rate increases.
B) increases as the inflation rate increases.
C) declines as the inflation rate declines.
D) increases as the inflation rate decreases.
E) declines as the inflation rate increases and increases as the inflation rate decreases.

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