You Put Money into an Account and Earn a Real

question 66

Multiple Choice

You put money into an account and earn a real interest rate of 6 percent. Inflation is 2 percent, and your marginal tax rate is 20 percent. What is your after-tax real rate of interest?

• A)4.8 percent
• B)3.2 percent
• C)2.8 percent
• D)None of the above is correct.

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Definitions:

Dysfunctional

Dysfunctional describes behaviors or processes that hinder an organization's or individual's performance and productivity.

Irrational Response

Is a reaction that does not logically follow from the available information or that is disproportionate to the situation.

Negotiation

A discussion aimed at reaching an agreement between two or more parties with differing views.

Information Systems

Integrated sets of components for collecting, storing, and processing data and for providing information, knowledge, and digital products.