If the Federal Government Replaced the Current Income Tax with a Consumption

question 40

Multiple Choice

If the federal government replaced the current income tax with a consumption tax

• A)the prices of corporate and municipal bonds would rise.
• B)the prices of corporate and municipal bonds would fall.
• C)the prices of corporate bonds would rise, while the prices of municipal bonds would fall.
• D)the prices of corporate bonds would fall, while the prices of municipal bonds would rise.