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An Increase in the Tax Rate on Dividends,other Things Equal,is

Question 29

Multiple Choice

An increase in the tax rate on dividends,other things equal,is likely to result in a(n)


A) increased demand for bonds due to an increase in the expected return on bonds relative to stocks.
B) increased supply of bonds due to an increase in the expected return on bonds relative to stocks.
C) reduced demand for bonds due to a decrease in the expected return on bonds relative to stocks.
D) reduced demand for bonds due to an increase in the expected return on bonds relative to stocks.

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