Multiple Choice
In which of the following cases is the after-tax real interest rate highest?
A) inflation is 6%,the pre-tax real interest rate is 3%,and the tax rate is 20%.
B) inflation is 6%,the pre-tax real interest rate is 3%,and the tax rate is 25%.
C) inflation is 4%,the pre-tax real interest rate is 2%,and the tax rate is 20%.
D) inflation is 4%,the pre-tax real interest rate is 2%,and the tax rate is 25%.
Correct Answer:
Verified
Correct Answer:
Verified
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