Business, 04.01.2021 20:00 kimberlylove387

Suppose you make $200,000 per year before the 3% raise. Rather than spend more money, you take your additional salary and buy $6,000 of Microsoft stock. Suppose the stock increases in value, and you can sell it next year for $6,600. Therefore, you have a $600 capital gain, or a 10% return on your investment. Suppose the tax rate on capital gains is 50%. After taxes, your capital gain is. Given the scenario from Part 1, which of the following inflation costs have you experienced?
a. shoe-leather costs.
b. tax distortions.
c. wealth redistribution .
d. money illusion.

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Suppose you make $200,000 per year before the 3% raise. Rather than spend more money, you take your...

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