With a Nominal Interest Rate of 8%,an Expected Inflation Rate

question 61

Multiple Choice

With a nominal interest rate of 8%,an expected inflation rate of 3%,and interest income taxed at a 25% rate,what is the expected after-tax real interest rate?

• A)5%
• B)3.75%
• C)3%
• D)1%

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Definitions:

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