The real interest rate is 6 percent a year and the income tax rate is 50 percent. With no inflation, what is the real after-tax interest rate? If the inflation rate rises to 4 percent a year, what is the real after-tax interest rate? With no inflation, the real after-tax interest rate is percent a year. With inflation of 4 percent a year the real after-tax interest rate is percent a year.
The real interest rate is 6 percent a year and the income tax rate is 50 percent. With no inflation, what is the real after-tax interest rate? If the inflation rate rises to 4 percent a year, what is the real after-tax interest rate? With no inflation, the real after-tax interest rate is percent a year. With inflation of 4 percent a year the real after-tax interest rate is percent a year.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 13P
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