Question
The nominal interest rate is 12%, inflation is 3%, the marginal income tax rate is 10%. What is after-tax real rate of interest? Answer with
The nominal interest rate is 12%, inflation is 3%, the marginal income tax rate is 10%. What is after-tax real rate of interest?
Answer with one decimal place
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
The aftertax real rate of interest can be calculated using the following formul...
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Step: 2
Step: 3
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
