Jake receives a portion of his income from his holdings of interest-bearing U. S. government bonds. The bonds offer a real interest rate of 4.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate.

Given the real interest rate of 4.5% per year, find the nominal interest rate on Sean's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario.

Inflation Rate Real Interest Rate Nominal Interest Rate After-Tax After-Tax
Nominal Interest Rate Real Interest Rate

(Percent) (Percent) (Percent) (Percent) (Percent)

2.0 4.5
8.5 4.5

Compared with lower inflation rates, a higher inflation rate will the after-tax real interest rate when the government taxes nominal interest income. This tends to saving, thereby the quantity of investment in the economy and the economy's long-run growth rate.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

answer; functional fixedness;

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answer90,000;