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Math Help - After-tax real rate of interest and minimum real interest rate??

  1. #1
    Junior Member
    Joined
    Mar 2008
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    After-tax real rate of interest and minimum real interest rate??

    I need help on these problems like explain it, and have an equation to solve the problem please. Anything would be appreciate it thanks!



    1. Assume the following;


    r = 4%
    τ = 0.2
    π = 4%


    What is the after-tax real rate of interest? ______________


    1. Assume the following;


    r = 4%
    τ = 0.2
    π = 20%

    What is the after-tax real rate of interest? ______________


    1. Assume a liquidity trap where i = 0% and π = 3%, what is the minimum real interest r? ___________________



    1. Assume a liquidity trap where i = 0% and π = -8%, what is the minimum real interest r? ___________________
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  2. #2
    Member
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    Mar 2010
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    Mumbai
    Posts
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    Thanks
    2

    Re: After-tax real rate of interest and minimum real interest rate??

    What are i, T, r, and n please specify.
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