You Put Money in an Account and Earn a Real

question 34

Multiple Choice

You put money in an account and earn a real interest rate of 10 percent. Inflation is 4 percent, and your marginal tax rate is 40 percent. What is your after-tax real interest rate?

• A) 1.8 percent
• B) 2.4 percent
• C) 3.2 percent
• D) 4.4 percent

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Definitions:

Mental Status

An assessment of a person's cognitive and emotional functioning, including awareness, perception, reasoning, and judgment.

Hindering Immigration

The act of creating obstacles or implementing policies that prevent or discourage people from moving to a new country.

Free Blacks

African Americans who were not enslaved, enjoyed certain degrees of freedom, and sometimes owned property, particularly before the Civil War in the United States.

Laws

Rules and regulations that are established and enforced by a governing authority to maintain order and protect people's rights.