You Put Money in an Account and Earn a Real

question 166

Multiple Choice

You put money in an account and earn a real interest rate of 8 percent.Inflation is 3 percent,and your marginal tax rate is 20 percent.What is your after-tax real interest rate?

• A)1.8 percent
• B)2.8 percent
• C)3.8 percent
• D)5.8 percent

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Definitions:

Corpus Callosum

A wide, thick nerve tract consisting of a band of commissural fibers, located beneath the cortex in the brain, that connects the left and right cerebral hemispheres, facilitating interhemispheric communication.

Cortex

The outer layer of the cerebrum in the brain, involved in various high-level functions such as thought, memory, and consciousness.

Cerebral Hemisphere

One of the two halves of the brain, each responsible for different functions, with the left hemisphere typically managing logic and language, and the right hemisphere handling spatial abilities and creativity.

Somatosensory Cortex

A part of the brain that processes sensory input from various parts of the body, including touch, temperature, and pain.