The cost of everything and the problem of not knowing whether or not its going to succeed.
Hot countries so they will be warm
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.
Answer:
true
Explanation:
What you do now or what your planning on doing can always determines what you can possibly do next. But you have to make sure your not doing or posting anything bad on the internet or else they won't hire you.
Answer:
c
Explanation:
because he has to do a little of eveything