Given a Nominal Interest Rate of 12 Percent,when Would You

question 87

Multiple Choice

Given a nominal interest rate of 12 percent,when would you earn the highest after-tax real interest rate?

• A) Inflation is 2 percent,and the tax rate is 50 percent.
• B) Inflation is 3 percent,and the tax rate is 30 percent.
• C) Inflation is 5 percent,and the tax rate is 20 percent.
• D) Inflation is 6 percent,and the tax rate is 40 percent.

---

Definitions:

Workplace

A location where people perform their jobs or carry out professional duties.

American Medical Association

A professional group that represents the interests of doctors and promotes medicine in the United States, focusing on public health, medical ethics, and scientific research.

Alcoholism

is characterized by a physical and psychological dependence on alcohol, leading to significant impairment or distress.

Non-curable Disease

A medical condition or illness that cannot be fully cured or eradicated, though its symptoms may be managed or palliated.