Solution :
Given :
The bonds offer a
of 4.5% per year
Tax rate = 10% = 0.10
Inflation rate = 2
=
+ 
= 2 + 4.5
= 6.5
=

= 

= 5.85
After tax real interest rate =
- 
= 5.85 - 2.0
= 3.85
= 7.0

=
+ 
= 7 + 4.5
= 11.5
=



= 10.35
= 11.5 x (1 - 0.10)
= 11.5 x 0.90
= 10.35
=
- 
= 10.35 - 7.0
= 3.35
Putting all the value in table :
Real interest Nominal interest After tax nominal After tax
rate rate interest rate interest rate
2.0 4.5 6.5 5.85 3.85
7.0 4.5 11.5 10.35 3.35
Comparing with the
, a
will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.
Art Projects
Have you ever made a collage as a group, or painted a wall for a community project. Whenever you do something like that you are given a certain piece to do. This is division. When divided the workload becomes easy and light and when working together side by side, you are learning valuable people skills.
Answer:
A. Capital Stock
Explanation:
Accounts are categorized following the accounting equation of assets are equal to equity plus liabilities. Asset accounts track and record the resources that a business owns or controls. Assets being the valuable items that a business uses to generate income or maintain operations.
Equity represents the owner's interest in the business. It comprises capital contributions and retained earnings. Capital stocks belong to equity accounts and not asset accounts.
Answer:
C) produce products and services that coordinate with hundreds or more firms and suppliers.
Explanation:
Sometimes coordinating with a few vendors and a few clients may get complicated, imagine if you have to deal with hundreds of vendors and suppliers. Depending on the industry, sometimes the supply chain department (including upstream and downstream) can be very large.
For example a car manufacturer, who needs tens of thousands of different parts to manufacture every type of car, has hundreds of employees in the supply chain units.
Long-term disability insurance costs about 60% of income which is helpful as long-term disabilities last on average about 65 years.
<h3>What do you mean by insurance?</h3>
Insurance is referred to as a contract where an individual receives financial protection against the losses of an insurance company.
Long-term disability insurance costs approximately 60% of the income and premiums are not guaranteed and can be canceled by the employer.
Therefore, long-term disability insurance costs about 60% of income which is helpful as long-term disabilities last on average about 65 years.
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