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seraphim [82]
3 years ago
15

Suppose that the tax on interest income is levied on the nominal interest​ rate, the tax rate is 20 ​percent, and the real inter

est rate is 4 percent a year. There is no inflation.
Calculate the​ after-tax real interest rate and the true tax rate on interest income.
Business
1 answer:
8090 [49]3 years ago
3 0

Answer:

  • After-tax interest rate ⇒ 3.2%
  • True tax on interest income ⇒ 20%

Explanation:

After-tax real interest rate:

= Real interest rate * (1 - tax rate)

= 4% * (1 - 20%)

= 4% * 80%

= 3.2%

True tax on interest income:

= 20%

True tax on interest income is the tax rate levied on the nominal interest rate which is 20%.

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Answer:

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Explanation:

Agland has an advantage producing Organic grain, and Zealand producing Incense, So:

If Agland specialices in producing organic grain it would produce with 20 workers 200 units of grain a year.

If Zealand specialices in producing Incense, it would produce with 10 workers 150 units of incense a year.

This gives a Total combined output of 200 units of grain and 150 unit of incense a year.

Given that the total current output of the two countries is 150 units of grain and 20 units of incense it would increase in 50 units of grain and 130 units of incense.

8 0
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8 0
2 years ago
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Fynjy0 [20]

Answer:

The correct answer is KISS Rule.

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5 0
2 years ago
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Answer:

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Explanation:

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