The annual return to savings is currently 100 billion per


The annual return to savings is currently $100 billion per year in a certain nation, while the estimated value of wealth is $1 trillion. a. Calculate the percentage gross return to savings. b. Assuming the supply of savings is perfectly inelastic, how much would be collected by a 1 percent tax on wealth? c. Calculate the net percentage return to savings in the presence of the tax.

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Financial Management: The annual return to savings is currently 100 billion per
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