If the Nominal Interest Rate Is 11%, the Inflation Rate

question 13

Multiple Choice

If the nominal interest rate is 11%, the inflation rate is 4% and the tax rate is 25%, what is the real after-tax interest rate?

• A)-1.25 percent
• B)4.25 percent
• C)5.25 percent
• D)8 percent
• E)10 percent

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