You Put Money into an Account and Earn a Real

question 81

Multiple Choice

You put money into an account and earn a real interest rate of 6 percent.Inflation is 3 percent,and your marginal tax rate is 20 percent.What is your after-tax real rate of interest?

• A)4.8 percent
• B)5.4 percent
• C)7.2 percent
• D)4.2 percent.

---

Definitions:

Grade Inflation

The tendency over time for academic grades to become progressively higher, often without a corresponding increase in learning or achievement.

Assortative Mating

Occurs when marriage partners are selected so that spouses are similar on various criteria of social rank.

Educational Process

A systematic, structured period of learning and training to impart knowledge, skills, and cognitive development.

Universal System

A theoretical system or framework that applies universally, across different cultures, societies, or disciplines, often used in models of scientific or social analysis.