If the Nominal Interest Rate Is 11%,the Inflation Rate Is

question 49

Multiple Choice

If the nominal interest rate is 11%,the inflation rate is 4% and the tax rate is 25%,what is the real after-tax interest rate?

• A)-1.25%
• B)4.25%
• C)5.25%
• D)8%
• E)10%

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Definitions:

Personal Responsibility Act

A legislative measure aimed at encouraging individuals to take responsibility for their actions, often in the context of welfare reform or healthcare legislation.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.

Progressive

Referring to the support for or advocacy of improvements or reform in societal practices, often with a focus on social justice, equality, and modernization.

Tax Expenditures

Government losses in tax revenue due to exemptions, deductions, credits, and preferential tax rates.