Multiple Choice
Suppose that in some tax year you earned a nominal interest rate of 6 percent.During the time you held these funds inflation was 1 percent.You compute that you made a real after-tax interest rate of 3 percent.What was your tax rate?
A) 40 percent.
B) 33.3 percent.
C) 25 percent.
D) 50 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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