Which of the Following Statements Are True

question 75

Multiple Choice

Which of the following statements are true?

• A) An increase in tax rates will increase the demand for Treasury bonds, lowering their interest rates.
• B) Because the tax-exempt status of municipal bonds was of little benefit to bond holders when tax rates were low, they had higher interest rates than U.S. government bonds before World War II.
• C) Interest rates on municipal bonds will be higher than comparable bonds without the tax exemption.
• D) Because coupon payments on municipal bonds are exempt from federal income tax, the expected after-tax return on them will be higher for individuals in lower income tax brackets.

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Activities undertaken for enjoyment, relaxation, or leisure, not related to occupational or necessary tasks.

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