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1. Assume that Congress amends the tax law to provide for a maximum 18 percent rate on rental income generated by single-family residences. What effect

1. Assume that Congress amends the tax law to provide for a maximum 18 percent rate on rental income generated by single-family residences. What effect might this preferential rate have on the market value of this category of real estate?

2. Identify two reasons why a firms actual marginal tax rate for a year could differ from the projected marginal tax rate for that year.

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