Multiple Choice
If the federal government replaced the current income tax with a value-added tax
A) the prices of Treasury and municipal bonds would rise.
B) the prices of Treasury and municipal bonds would fall.
C) the prices of Treasury bonds would rise, while the prices of municipal bonds would fall.
D) the prices of Treasury bonds would fall, while the prices of municipal bonds would rise.
Correct Answer:
Verified
Correct Answer:
Verified
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