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Question 2 10 pts If Congress passes a law such that long term Treasury bonds are exempt from income tax (that is, they are not
Question 2 10 pts If Congress passes a law such that long term Treasury bonds are exempt from income tax (that is, they are not taxed) then, all else equal, one would expect The term structure to become flatter (less slope) Interest rates at every maturity to fall Interest rates at every maturity to rise The term structureto become steeper (greater sope
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