You Put Money into an Account and Earn a Real

question 71

Multiple Choice

You put money into an account and earn a real interest rate of 5 percent.Inflation is 2 percent,and your marginal tax rate is 35 percent.What is your after-tax real rate of interest?

• A)5.25 percent
• B)3.05 percent
• C)2.55 percent
• D)1.25 percent

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Definitions:

Transgenders

People who cross over or occupy an intermediate position in the binary male-female gender construction.

Intersexuals

People born with reproductive organs, genitalia, and/or sex chromosomes that are not exclusively male or female.

Eunuchs

Castrated males, often assigned to serve in royal courts or as guardians of harems.

Castrati

Male singers who were castrated before puberty to preserve their high-pitched vocal range; prominent in 17th and 18th-century European classical music.