The Nominal Interest Rate Is 4%,the Inflation Rate Is 1

question 65

Multiple Choice

The nominal interest rate is 4%,the inflation rate is 1% and the tax rate is 20%.Given U.S.tax laws,how is after-tax real return computed?

• A).03(1-.20)
• B).04(1 -.20)
• C).04(1 - .20)- .01
• D)None of the above is correct.

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Definitions:

GDP

Gross Domestic Product represents the aggregate value, in monetary or market terms, of every final good and service created inside the confines of a country during a designated period.

Individual Transferable Quota (ITQ)

A policy tool used in fisheries management, allowing fishing rights to be allocated to individuals or entities, which can then be traded.

Market Price

The market price is the current price at which a good or service can be bought or sold in a marketplace.

Tragedy of the Commons

The tragedy of the commons describes a situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even as it is clear that it is not in anyone's long-term interest for this to happen.