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Business, 13.07.2021 20:00 kaseykrueger47
Suppose that the tax on interest income is levied on the nominal interest rate, the tax rate is 20 percent, and the real interest rate is 5 percent a year. The inflation rate is 2 percent a year. Calculate the after-tax real interest rate and the true tax rate on interest income.
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Suppose that the tax on interest income is levied on the nominal interest rate, the tax rate is 20...
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