MICROECONOMICS - CONNECT ACCESS
21st Edition
ISBN: 9781264197071
Author: McConnell
Publisher: MCG
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Chapter 18, Problem 8DQ
To determine
The difference between real interest rate and nominal interest rate.
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If the inflation rate is 3 percent and the nominal interest rate is 8 percent, how much is the after-tax real interest rate if the government imposes a 20 percent interest income tax? O a. 3.4 percent O b. 4 percent O c. None of the above O d. 5.4 percent.
Using the data in Table 8P - 3 , calculate the CPI and the inflation rate in each year, using 2010 as a base year . [LO 8.2
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Aggregate labour hours, L, are given by L = 51*(1-t), where 't' is the rate of income tax. The real wage rate is fixed and equal to 1. At what tax rate is tax revenue maximised?
State your answer to 2 decimal places.
Chapter 18 Solutions
MICROECONOMICS - CONNECT ACCESS
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