Author Question: Suppose the annual inflation rate is 10, and an asset bought at the beginning of the year for ... (Read 57 times)

Mr.Thesaxman · **on:** Jun 30, 2018

Suppose the annual inflation rate is 10, and an asset bought at the beginning of the year for 100,000 is sold for 115,000. If the capital-gains tax rate is 30, what is the (approximate) effective tax rate on the sale of this asset?

A) 10
B) 20
C) 25
D) 30
E) 4

Question 2

Which of the following is a function of money?

A) medium of exchange
B) provides protection from inflation
C) it is a flow variable
D) all of the above
E) none of the above