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Question 45 (10 points) If the tax rate is 25 percent, compute the before-tax real interest rate and the after- tax real interest rate in
Question 45 (10 points) If the tax rate is 25 percent, compute the before-tax real interest rate and the after- tax real interest rate in each of the following countries. a) United States: The nominal interest rate is 10 percent, and the inflation rate is 5 percent. b) Mexico: The nominal interest rate is 6 percent, and the inflation rate is 2 percent c) Canada: The nominal interest rate is 4 percent, and the inflation rate is 1 percent d) Which country has the highest after-tax real interest rate? What are the lessons learned from this analysis? In particular, what are the implications for the Fisher Effect? KA Paragraph B 1 U V D -142 EQ (/> O Lato (Recom 19px
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