Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) Indexing tax brackets reduces the extent of "bracket creep."
B) Bonds issued by a municipality such as the city of Miami would carry a lower interest rate than bonds with the same risk and maturity issued by a private corporation such as Florida Power & Light.
C) Our federal tax laws tend to encourage corporations to finance with debt rather than with equity securities.
D) Our federal tax laws encourage the managers of corporations with surplus cash to invest it in stocks rather than in bonds. However, other factors may offset tax considerations.
E) All of the statements above are true.