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A Proposed Increase in the Federal Income Tax Rate Should

Question 65

Multiple Choice

A proposed increase in the federal income tax rate should:


A) Have no impact on the slope of the yield curve since the tax laws impact all maturities the same
B) Cause the slope of the yield curve to become negative
C) Increase the slope of the yield curve since it increases the risk premium of longer maturities
D) Flatten the yield curve

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