Given a Nominal Interest Rate of 7 Percent,in Which of the Following

question 184

Multiple Choice

Given a nominal interest rate of 7 percent,in which of the following cases would you earn the lowest after-tax real interest rate?

• A)Inflation is 4 percent, and the tax rate is 25 percent.
• B)Inflation is 3 percent, and the tax rate is 20 percent.
• C)Inflation is 2 percent, and the tax rate is 15 percent.
• D)Inflation is 1 percent, and the tax rate is 10 percent.

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Definitions:

Salespeople

Individuals who sell goods and services to consumers; they play roles ranging from informing and advising to negotiating and closing the sale.

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a specific job.

Compensation Plan

A complete package that outlines employees' wages, salaries, benefits, and terms of payment in an organization.

Salespeople

Individuals whose job is to sell products or services to customers, either in person, over the phone, or via digital channels.