Author Question: If the nominal rate of interest on a bond was 5 percent, the inflation rate was 3 percent and an ... (Read 47 times)

storky111

  • Hero Member
  • *****
  • Posts: 561
If the nominal rate of interest on a bond was 5 percent, the inflation rate was 3 percent and an individual was in a 25-percent tax bracket, the after-tax real return on the bond would be equal to
 
  a. 2 percent.
  b. 2.5 percent
  c. .5 percent..
  d. -.5 percent.
  e. none of the above.

Question 2

Farm prices fell sharply in 191921 . Then, until 1929, the farm terms of trade (the movement of farm prices relative to the movement of non-farm prices)
 
  (a) collapsed by more than half.
  (b) remained essentially unchanged.
  (c) actually rose.
  (d) collapsed, but only slightly.



tuate

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

C

Answer to Question 2

(c)



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

For a complete list of videos, visit our video library