So, the dollar price of the jeans is the nominal variable, and the relative price is the real variable. The relative price of the jeans have been adjusted to inflation. The dollar price hasn't been adjusted for inflation, hence why it is the nominal variable (not adjusted for inflation).
The color of your vehicle
Answer: 25%
Explanation:
Municipal bonds are tax-free which means that the tax bracket that would make you indifferent between the 2 bonds would be the one that brings the after-tax yield on the taxable bond to the same yield as the Municipal bond.
Assume this tax rate to be x.
8% * ( 1 - x) = 6%
8% - 0.08x = 6%
0.08x = 8% - 6%
x = (8% - 6%) / 0.08
x = 25%
