This topic contains a solution. Click here to go to the answer

Author Question: Suppose you place 10,000 in a retirement fund that earns a nominal interest rate of 8 percent. If ... (Read 35 times)

student77

  • Hero Member
  • *****
  • Posts: 567
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Natalie4ever

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

b

Answer to Question 2

True




student77

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
Excellent


bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

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?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

For a complete list of videos, visit our video library