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2. The diagram below depicts equilibrium in the market for tax-exempt bonds. B L B Q On this diagram indicate i) the equilibrium tax-exempt
2. The diagram below depicts equilibrium in the market for tax-exempt bonds. B L B Q On this diagram indicate i) the equilibrium tax-exempt yield, ii) the quantity of tax-exempt securities issued, iii) the location of high tax tax bracket individual or institutional investors, iv) the location of low tax tax bracket individual or institutional investors, v) the location of the investor in the break-even (implied marginal) tax bracket.
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