You Put Money into an Account and Earn a Real

question 159

Multiple Choice

You put money into an account and earn a real interest rate of 4 percent. Inflation is 2 percent, and your marginal tax rate is 20 percent. What is your after-tax real rate of interest?

• A)1.2 percent
• B)2.8 percent
• C)4.8 percent
• D)None of the above is correct.

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Definitions:

Dissatisfying

Causing discontent or discomfort; not meeting an individual's expectations or desires.

Existing Group

A set of individuals who are currently assembled as a team or cohort within an organization or for a specific purpose.

Sole Basis

The only reason or foundation upon which a decision or action is based.

Job Description

A formal account of an employee's responsibilities, duties, and the requirements for a specific position within an organization.