You Put Money into an Account and Earn a Real

question 81

Multiple Choice

You put money into an account and earn a real interest rate of 6 percent.Inflation is 3 percent,and your marginal tax rate is 20 percent.What is your after-tax real rate of interest?

• A)4.8 percent
• B)5.4 percent
• C)7.2 percent
• D)4.2 percent.

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Definitions:

Shortages Worldwide

A global situation where the demand for various goods or services exceeds the available supply, leading to scarcity.

Proved Reserves

Quantities of natural resources, like oil or gas, that are confirmed by analysis to be recoverable under current technological and economic conditions.

Natural Resources

Assets occurring in nature, such as minerals, forests, water, and fertile land, that can be used for economic gain.

Relative Price

The price of a good or service in comparison to the price of other goods and services.