Question 7 The fact that in the USA, a municipal bond could have a lower yield compared to federal government bonds is an example of Select one: a. the distortionary effect of taxes, making them more popular compared to Treasuries b. the distortionary effect of taxes, making them less popular compared to Treasuries c. the distortionary effect of taxes, increasing their supply relative to demand d. None of the above

ECON MACRO
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ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter3: Economic Decision Makers
Section: Chapter Questions
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Question 7
The fact that in the USA, a municipal bond
could have a lower yield compared to
federal government bonds is an example of
Select one:
a. the distortionary effect of taxes, making
them more popular compared to Treasuries
b. the distortionary effect of taxes, making
them less popular compared to Treasuries
c. the distortionary effect of taxes,
increasing their supply relative to demand
d. None of the above
Transcribed Image Text:Question 7 The fact that in the USA, a municipal bond could have a lower yield compared to federal government bonds is an example of Select one: a. the distortionary effect of taxes, making them more popular compared to Treasuries b. the distortionary effect of taxes, making them less popular compared to Treasuries c. the distortionary effect of taxes, increasing their supply relative to demand d. None of the above
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