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Author Question: If the nominal rate of interest on a bond was 5 percent, the inflation rate was 3 percent and an ... (Read 36 times)

storky111

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on: Jun 30, 2018
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

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

(c)


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