With a nominal interest rate of 4%, an expected inflation rate of 1%, and interest income taxed at a rate of 25%, what is the expected after-tax real interest rate?
(a) 3%
(b) 2%
(c) 1%
(d) 0%
Answer: B
With a nominal interest rate of 4%, an expected inflation rate of 1%, and interest income taxed at a rate of 25%, what is the expected after-tax real interest rate?
(a) 3%
(b) 2%
(c) 1%
(d) 0%
Answer: B
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