If the nominal interest rate offered by local bank is 14%, expectation inflation rate is 4%, and assume the country has 20% tax rate on interest income. How much is the After-tax real interest rate? (Hint: enter your answer in 2 decimal places. Do not enter the percentage sign. For example 56.67% should be entered as 56.57)

If the nominal interest rate offered by local bank is 14%, expectation inflation rate is 4%, and assume the country has 20% tax rate on interest income. How much is the After-tax real interest rate? (Hint: enter your answer in 2 decimal places. Do not enter the percentage sign. For example 56.67% should be entered as 56.57)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...

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