Treasury bills and earned return

Assignment Help Business Economics

Reference no: EM131164539

During a one year period, the inflation rate was 5%. During the same year, you invested in Treasury bills and earned 7% return. You are in a 25% tax bracket.

A. Considering all factors, on the net you earned a rate of return of 2% in excess of the inflation rate

B. Considering all factors, on the net you earned a rate of return of 0.25% in excess of the inflation rate

C. Considering all factors, on the net you earned a rate of return of 1.75% in excess of the inflation rate

D. Considering all factors, on the net you earned a rate of return of 3.25%% less than the inflation rate

E. None of the above

Reference no: EM131164539

Questions Cloud

Get consumers to spend less on goods and services : From a Keynesian perspective, the way out of recession is to. Get consumers to spend less on goods and services. Get consumers to spend more on goods and services.

Price elasticity of demand and income elasticity of demand : Demand function for tickets for a rock concert has been estimated to be. Determine the values of the price elasticity of demand and the income elasticity of demand.

The export supply curve for particular country is the : The export supply curve for a particular country is the

Marginal rate of substitution of hamburgers for slices : Alanoud likes hamburgers and pizza. At her current level of consumption, her marginal rate of substitution of hamburgers for slices of pizza is 2. Explain what this means. If she increases her consumption of hamburgers, will her MRS (relinquishing ha..

Treasury bills and earned return : During a one year period, the inflation rate was 5%. During the same year, you invested in Treasury bills and earned 7% return. You are in a 25% tax bracket.

All other levels of spending remaining constant : Assuming an upward-sloping AS curve, if an economy is at full employment and investment spending decreases while all other levels of spending remaining constant, then the price level

What would be the appropriate fiscal policy to combat : What is a recessionary gap? What would be the appropriate fiscal policy to combat or offset one? What is an inflationary gap? What would be the appropriate fiscal policy to combat or offset one? Please answer the entire question for a good rating.

Calculate the loss of consumer surplus : Assume that there are 1,000 identical consumers in the market for good X, each with the same income and the same preferences. When the price of X is $50, the typical consumer 4 is willing and able to purchase 20 units of X. Show the effect of an incr..

Possibilities using budget constraints-indifference curves : Since 1900 in the US, family income has greatly increased (even after accounting for inflation), but the average number of children per family has decreased. Illustrate each of the following possibilities using budget constraints and indifference cur..

User Account

All Pages