Given a Nominal Interest Rate of 12 Percent,in Which of the Following

question 125

Multiple Choice

Given a nominal interest rate of 12 percent,in which of the following cases would you earn the highest after-tax real interest rate?

• A)Inflation is 5 percent, and the tax rate is 20 percent.
• B)Inflation is 4 percent, and the tax rate is 30 percent.
• C)Inflation is 3 percent, and the tax rate is 40 percent.
• D)Inflation is 2 percent, and the tax rate is 50 percent.

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Definitions:

Personal Selling Process

A series of steps salespeople follow when selling, which includes prospecting, making contact, presenting, handling objections, closing, and follow-up.

Cold Calling

The practice of soliciting business from potential customers who have had no prior contact with the salesperson conducting the call.

Cold Canvassing

A sales technique involving direct contact with potential customers without prior appointment, often through door-to-door visits or telephone calls, to offer products or services.

Personal Selling Process

A direct marketing approach involving personal interactions between a salesperson and a prospective buyer to close a sale.