In the case where taxes on interest earned in a savings account causes negative real rates O it is still better to put your money in a savings account than to hold it in the form of ca O it is better to lend your money directly to borrowers than to put your money in a saving O putting your money in a savings account is neither better nor worse than holding it in t O it is better to hold your money in the form of cash than to put it into a savings account.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 42P
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In the case where taxes on interest earned in a savings account causes negative real rates of return after taxes:
O it is still better to put your money in a savings account than to hold it in the form of cash.
O it is better to lend your money directly to borrowers than to put your money in a savings account.
O putting your money in a savings account is neither better nor worse than holding it in the form of cash.
O it is better to hold your money in the form of cash than to put it into a savings account.
Transcribed Image Text:In the case where taxes on interest earned in a savings account causes negative real rates of return after taxes: O it is still better to put your money in a savings account than to hold it in the form of cash. O it is better to lend your money directly to borrowers than to put your money in a savings account. O putting your money in a savings account is neither better nor worse than holding it in the form of cash. O it is better to hold your money in the form of cash than to put it into a savings account.
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