What are i, T, r, and n please specify.
I need help on these problems like explain it, and have an equation to solve the problem please. Anything would be appreciate it thanks!
- Assume the following;
r = 4%
τ = 0.2
π = 4%
What is the after-tax real rate of interest? ______________
- Assume the following;
r = 4%
τ = 0.2
π = 20%
What is the after-tax real rate of interest? ______________
- Assume a liquidity trap where i = 0% and π = 3%, what is the minimum real interest r? ___________________
- Assume a liquidity trap where i = 0% and π = -8%, what is the minimum real interest r? ___________________