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valputin valputin
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8 years ago
Everything else held constant, if the tax-exempt status of municipal bonds were eliminated, then
A) the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds.
B) the interest rate on municipal bonds would equal the rate on Treasury bonds.
C) the interest rates on municipal, Treasury, and corporate bonds would all increase.
D) the interest rate on municipal bonds would exceed the rate on Treasury bonds.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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#2
8 years ago
Perfect answer, thx
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
@valputin,

Happy to help Slight Smile
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