An increase in the marginal tax rate would likely the, Financial Management

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An increase in the marginal tax rate would likely the

1. The board of governors of the Fed _____

sets reserve requirements

sets fiscal policy

sets the Fed Funds rate

2. An increase in the marginal tax rate would likely _____ the demand for municipal bonds and _____ the demand for U.S. government bonds.

decrease; decrease

decrease; increase

increase; increase

increase; decrease

3. The Fed's objective with Operation Twist was to ____.

lower short-term interest rates

raise long-term interest rates

lower long-term interest rates

bailout European companies

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