16. Given a nominal interest rate of 5 percent, in which of the following cases would you earn the highest after-tax real rate of interest? a. Inflation is 3 percent; the tax rate is 20 percent b. Inflation is 2 percent; the tax rate is 40 percent c. Inflation is 1 percent; the tax rate is 60 percent d. The after-tax real interest rate is the same for all

16. Given a nominal interest rate of 5 percent, in which of the following cases would you earn the highest after-tax real rate of interest?
a. Inflation is 3 percent; the tax rate is 20 percent
b. Inflation is 2 percent; the tax rate is 40 percent
c. Inflation is 1 percent; the tax rate is 60 percent
d. The after-tax real interest rate is the same for all

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