Multiple Choice
Given a nominal interest rate of 6 percent,in which of the following cases would you earn the lowest after-tax real rate of interest?
A) Inflation is 4 percent;the tax rate is 5 percent.
B) Inflation is 3 percent;the tax rate is 20 percent.
C) Inflation is 2 percent;the tax rate is 30 percent.
D) The after-tax real interest rate is the same for all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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