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In 1993, President Clinton and Congress raised tax rates on high income households. As a result, the yield spread between Treasuries and munis became larger (in other words, the differences between Treasury yields and muni yields increased). describe this development using the Risk Structure of Interest Rates. Use a bond market diagram to illustrate your answer.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M968323

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