Suppose that the tax on interest income is levied on the nominal interest​ rate, the tax rate is 30 ​percent, and the real interest rate is 5 percent a year. There is no inflation.   Calculate the​ after-tax real interest rate and the true tax rate on interest income. The​ after-tax real interest rate is ______percent. ​>>> Answer to 1 decimal place.   The true tax rate on interest income is______percent. ​>>> Answer to 1 decimal place.

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A: Nominal interest rate= 14% Rate of inflation= 7% a) Expected real interest rate

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A: Nominal interest rate = Real interest rate + Inflation rate

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A: Recessionary gap means Real GDP is less than potential GDP.

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A: Any nominal variable adjusted for the effects of inflation is called a real variable.

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A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

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