Multiple Choice
The Bush tax cut reduced the top income tax bracket from 39% to 35% over a ten-year period. Supply and demand analysis predicts the impact of this change was a ________ interest rate on municipal bonds and a ________ interest rate on Treasury bonds.
A) higher; lower
B) lower; lower
C) higher; higher
D) lower; higher
Correct Answer:
Verified
Correct Answer:
Verified
Q33: According to the expectations theory of the
Q37: The _ of the term structure states
Q38: Use the following figure to answer the
Q40: Risk premiums on corporate bonds tend to
Q47: In actual practice,short-term interest rates and long-term
Q57: If the possibility of a default increases
Q63: Everything else held constant,if income tax rates
Q74: According to the liquidity premium theory of
Q85: Three factors explain the risk structure of
Q109: Which of the following bonds would have