The Real Interest Rate in 2012 Was

question 62

Multiple Choice

The real interest rate in 2012 was

• A) about 9 percent.
• B) about 7 percent.
• C) about 5 percent.
• D) about 3 percent.
• E) a negative number.

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Definitions:

Progressive

A system or policy where the level of contribution or effort increases with some measure of capacity, such as a progressive tax system where higher income earns pay a higher rate.

Proportional

Relating to or denoting a relationship where elements vary together at a constant rate and a change in one element results in a corresponding change in another.

Regressive

A term describing a tax system where the tax rate decreases as the taxable amount increases, placing a greater relative burden on lower income earners.

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, previously used to report income to the IRS.