Suppose the tax rate on interest income is 25 percent, the real interest rate is 4
percent, and the inflation rate is 4 percent. The real after-tax interest rate is
The correct answer is: 2.0 percent
Why is it 2% and not 4%? How is this calculated?
Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. The real after-tax…
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