Economy A 2% 6% (b) Nominal Interest Rate Inflation Rate Real interest rate (a) Reduced interest due to 20% tax (0.2 x nominal interest rate) (c) (d) After-tax nominal interest rate (0.8 x nominal interest rate) (e) (f) After tax real interest rate (g) (h) (b). (1) Fill in with appropriate numbers: (a)_ (d). (c)_ (e)_ (g). (h)_ (2) Which item provides the incentive to save? (a) Nominal Interest Rate (b) Inflation Rate (c) Real Interest Rate (d) After-tax nominal interest rate (e) after-tax Real Interest Rate (3) Which economy is more attractive in saving? (a) Economy A (b) Economy B (c) Economy A and Economy B are the same (d)None Economy B 10% 5%