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Inflation is 2 percent and your marginal tax rate is 35

Question - You put money into an account and earn an real interest rate of 5 percent. Inflation is 2 percent, and your marginal tax rate is 35 percent. What is your after-tax real rate of interest?

a. 5.25 percent

b. 3.05 percent

c. 2.55 percent

d. 1.25 percent

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Macroeconomics: Inflation is 2 percent and your marginal tax rate is 35

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Macroeconomics: Inflation is 2 percent and your marginal tax rate is 35

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