You Put Money in an Account and Earn a Real

question 103

Multiple Choice

You put money in an account and earn a real interest rate of 10 percent.Inflation is 3 percent,and your marginal tax rate is 40 percent.What is your after-tax real interest rate?

• A)4.8 percent
• B)3.2 percent
• C)2.8 percent
• D)1.8 percent

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Definitions:

UCC

Stands for Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Expropriation

The act by the government or its authority of taking private property for public use, with payment of compensation to the owner.

International Law

A body of rules, agreements, and treaties that govern the conduct and relations between different nations and states.

Public Purpose

This term refers to an underlying principle that government actions must serve the general interests of the community or public at large, rather than private interests.