With a Nominal Interest Rate of 4%,an Expected Inflation Rate

question 65

Multiple Choice

With a nominal interest rate of 4%,an expected inflation rate of 1%,and interest income taxed at a rate of 25%,what is the expected after-tax real interest rate?

• A)3%
• B)2%
• C)1%
• D)0%

---

Definitions:

Soil Acidity

The measure of hydrogen ion concentration in soil, affecting nutrient availability and plant growth.

Pine Needles

The slender, pointed leaves of pine trees, adapted to conserve water.

Secondary Succession

The process of ecological recovery and species replacement that occurs in an area where a biological community has been partially or entirely removed.

Bare Rock

Exposed rock surfaces without any vegetation, soil, or biological activity visible on them.