Given a Nominal Interest Rate of 6 Percent,in Which of the Following

question 55

Multiple Choice

Given a nominal interest rate of 6 percent,in which of the following cases would you earn the highest after-tax real rate of interest?

• A)Inflation is 3 percent;the tax rate is 25 percent.
• B)Inflation is 1 percent;the tax rate is 50 percent.
• C)Inflation is 1 percent;the tax rate is 55 percent.
• D)Inflation is 4 percent;the tax rate is 10 percent.

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Definitions:

Selective Serotonin Reuptake Inhibitors

A class of drugs commonly used as antidepressants in the treatment of major depressive disorder, anxiety disorders, and some personality disorders.

Fragile X Syndrome

A genetic disorder causing intellectual disability, behavioral challenges, and characteristic physical features.

Phenylketonuria

A rare inherited disorder that increases the levels of a substance called phenylalanine in the blood, leading to intellectual disability and other health issues unless managed by diet from an early age.

Phenylalanine

An essential amino acid found in the human body used by the body to produce proteins and other important molecules, which is obtained through the diet.