Casimir Purchased One Share of Norcet Stock for $100 in Year

question 102

Multiple Choice

Casimir purchased one share of Norcet stock for $100 in year 1 and sold that share in year 2 for $200. The inflation rate between year 1 and year 2 was 50 percent. If the capital gains tax is imposed at a rate of 50 percent, what is Casimir's after-tax real capital gain?

• A) $0
• B) $50
• C) $100
• D) $200

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Definitions:

Dependent Variable

The factor or condition that is measured at the end of an experiment and is presumed to vary as a result of the manipulations of the independent variable(s).

Aggression

Conduct aimed at causing pain or fear in others, manifested through either physical aggression or verbal assaults.

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other variable.

Independent Variable

In an experiment, a factor or condition that is deliberately manipulated to determine whether it causes any change in another behavior or condition.