You Put Money in an Account and Earn a Real

question 62

Multiple Choice

You put money in an account and earn a real interest rate of 10 percent.Inflation is 2 percent,and your marginal tax rate is 20 percent.What is your after-tax real interest rate?

• A) 1.6 percent
• B) 2.6 percent
• C) 5.6 percent
• D) 7.6 percent

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Definitions:

Advantageous Situations

Scenarios that present favorable conditions or opportunities likely to benefit an individual or group.

Behavioural Style

Behavioural style pertains to an individual's consistent patterns of actions and reactions, showcasing their preferred way of behaving, responding, and communicating in various situations.

Successful Minority

Describes a subgroup within a larger population that achieves a higher level of success compared to the average, often despite facing systemic barriers.

Principled

Acting in accordance with morality and showing recognition of right and wrong.