Answer:
How to calculate tax liability from taxable income
Explanation:
Your taxable income minus your tax deductions equals your gross tax liability. Gross tax liability minus any tax credits you're eligible for equals your total income tax liability. hope this helps you :)
Answer: Japan has the higher real interest rate.
Explanation:
Japan:
Nominal interest rate = 5%
Inflation rate = 2%
Real interest rate = Nominal interest rate - Inflation rate
= 5 - 2
= 3%
United States:
Nominal interest rate = 7%
Inflation rate = 6%
Real interest rate = Nominal interest rate - Inflation rate
= 7 - 6
= 1%
∴ Japan has the higher real interest rate.
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