If the Inflation Rate Was 8%, and the Tax Rate

question 200

Essay

If the inflation rate was 8%, and the tax rate was 20%, and you deposited money in a bank account that pays 12%, what is your after tax real interest rate? Show you work.

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Definitions:

Garrett Hardin

An ecologist known for his work on environmental issues and for popularizing the concept of the "tragedy of the commons," which describes the problem of individuals overexploiting a shared resource.

Tragedy of the Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources through their collective action.

Commons

Describes resources that are accessible to all members of a society, including natural resources like air and water, and cultural goods such as public land and knowledge.

Nineteenth Amendment

An amendment to the United States Constitution granted women the right to vote, ratified in 1920.