One of government introduces regulations addressing worker safety and environmental protection, it affects businesses and consumers.
September 3, 2020
Consider the following shortrun model of the economy. C = 50 +0.9(YT) , I = 50 – r , G=T=100 , M=3900, P=5, L(Y,r) = 0.8y – 2r (a) Find the IS…
September 3, 2020

If the tax rate is 40 percent, compute the before-tax real interest rate and the after-tax interest rate in each of the following cases.

a. the nominal interest rate is 10 percent and inflation rate is 5 percent.

b. the nominal interest rate is 6 percent and the inflation rate is 2 percent.

c. the nominal interest rate is 4 percent and the inflation rate is 1 percent.

KM
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