You Put Money in an Account and Earn a Real

question 34

Multiple Choice

You put money in an account and earn a real interest rate of 10 percent. Inflation is 4 percent, and your marginal tax rate is 40 percent. What is your after-tax real interest rate?

• A) 1.8 percent
• B) 2.4 percent
• C) 3.2 percent
• D) 4.4 percent

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Definitions:

File Servers

Computers dedicated to storing and managing files in a network, allowing other computers on the network to access them.

Simple Squamous Epithelium

A type of epithelial tissue composed of a single layer of flat cells that lines surfaces like blood vessels and lung alveoli, facilitating diffusion and filtration.

Cube-shaped Cells

Cells that have a cube or box-like shape, commonly found in certain types of epithelial tissue.