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Author Question: Suppose you place 10,000 in a retirement fund that earns a nominal interest rate of 8 percent. If ... (Read 36 times)

student77

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Suppose you place 10,000 in a retirement fund that earns a nominal interest rate of 8 percent. If you expect inflation to be 5 percent or lower, then you are expecting to earn a real interest rate of at least:
 a. 1.6 percent.
  b. 3 percent.
  c. 4 percent.
  d. 5 percent.

Question 2

The Laffer curve is based on the idea that if the tax rate is sufficiently high, then raising it even more will actually reduce total tax revenues. According to Laffer, this happens because the growing tax rates reduce economic activity at an even faster rate.
 a. True
  b. False
  Indicate whether the statement is true or false



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Natalie4ever

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Answer to Question 1

b

Answer to Question 2

True




student77

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


vickyvicksss

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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