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    Exam 5: How Do Risk and Term Structure Affect Interest Rates?
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    If Municipal Bonds Were to Lose Their Tax-Free Status,then the Demand
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If Municipal Bonds Were to Lose Their Tax-Free Status,then the Demand

Question 31

Question 31

Multiple Choice

If municipal bonds were to lose their tax-free status,then the demand for Treasury bonds would shift ________,and the interest rate on Treasury bonds would ________.


A) rightward; fall
B) rightward; rise
C) leftward; fall
D) leftward; rise

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