Solved

Suppose the Annual Inflation Rate Is 10%,and an Asset Bought

Question 10

Multiple Choice

Suppose the annual inflation rate is 10%,and an asset bought at the beginning of the year for $100,000 is sold for $115,000.If the capital-gains tax rate is 30%,what is the (approximate) effective tax rate on the sale of this asset?


A) 10%
B) 20%
C) 25%
D) 30%
E) 4%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: Which of the following is not a

Q7: Monetary policy affects which of the following

Q8: Each governor of the Federal Reserve is<br>A)appointed

Q9: Reducing the maximum LTV is likely to

Q11: What are the lessons from the crisis

Q12: Suppose individuals decide to reduce their holdings

Q13: Discuss the relationships among the various monetary

Q14: An economy is said to be in

Q15: First,write out the equation that represents the

Q42: For this question,assume that the Fed sets