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If the Federal Government Replaced the Current Income Tax with a National

Question 53

Multiple Choice

If the federal government replaced the current income tax with a national sales tax, the price of:


A) corporate bonds and municipal bonds would rise.
B) municipal bonds would rise and corporate bonds would not change.
C) corporate bonds would fall while the price of municipal bonds would rise.
D) municipal bonds would fall while the price of corporate bonds would rise.

Correct Answer:

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