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When a Municipal Bond Is Given Tax-Free Status,the Demand for Municipal

question 16

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When a municipal bond is given tax-free status,the demand for municipal bonds shifts ________,causing the interest rate on the bond to ________.


Definitions:

FICA Medicare

Part of the U.S. payroll tax, specifically aimed at funding Medicare, a federal health insurance program for people aged 65 and older, and some younger individuals with disabilities.

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