Everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on Treasury securities when
A) income tax rates are lowered.
B) income tax rates are raised.
C) municipal bonds become more widely traded.
D) corporate bonds become riskier.
A
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Answer the next question based on the following demand and cost data faced by a pure monopolistDemand DataCost DataPriceQuantity DemandedOutputTotal Cost$2.7533$4.002.50444.502.25554.752.00665.751.75777.75The profit-maximizing price for the pure monopoly will be ________.
A. $2.00 B. $1.75 C. $2.25 D. $2.50
Each of the following explains why cost-benefit analysis is difficult except
a. there is no price with which to judge the value of a public good. b. surveys are often biased and unreliable. c. it is difficult to identify all factors that influence costs and benefits of public goods. d. government projects rarely have sufficient funding to complete them on time.
If the price level increased from 120 to 130, then what was the inflation rate?
a. 1.1 percent. b. 7.7 percent. c. 10.0 percent. d. 8.3 percent.
When inflation equals the value determined by past expectations and pricing decisions and output equals the level of short-run equilibrium output consistent with that inflation, the economy is said to be in ________ equilibrium.
A. short-run B. long-run C. full-employment D. potential