If the interest rate on taxable government consoles is 10 percent, what will happen to the price

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If the interest rate on taxable government consoles is 10 percent, what will happen to the price of an existing tax-exempt government consol if the government reduces everyone’s marginal tax rate from 50 to 30 percent?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:24 AM

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If the interest rate on taxable government consoles is 10 percent, what will happen to the price

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The interest rate on taxexempt consoles would have been 5 when everyones marg...View the full answer

Microeconomics and Behavior

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