If the inflation rate was 8%, and the tax rate was 20%, and you deposited money in a bank account that pays 12%, what is your after tax real interest rate? Show you work
The after tax nominal interest rate is 12% - 12%x20% = 9.6%.
The after tax real interest rate is 9.6% - 8% = 1.6%.
Economics
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Economics
A monopsonist facing many suppliers of labor will employ:
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Economics