Suppose the pretax real interest rate (r) is 2 percent, the tax rate (^) is 0.4, and

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Suppose the pretax real interest rate (r) is 2 percent, the tax rate (^) is 0.4, and the inflation rate (n) is 8 percent. Calculate the after-tax real interest rate (r).

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:46 AM

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Suppose the pretax real interest rate (r) is 2 percent, the tax rate (^) is 0.4, and

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Equation 144 states r 1 rn G...View the full answer

Money Banking and Financial Markets

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