One Reason Why Cities Have Difficulty Raising Money Is Because

question 1

Multiple Choice

One reason why cities have difficulty raising money is because

• A) federal taxes have increased dramatically.
• B) rural areas receive the most support from state taxes.
• C) suburbs have drained off much of the citiesʹ tax base.
• D) suburbanites who come into cities rarely spend any money.

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Definitions:

Holding Period

The duration of time an investment is held before being sold.

Modified Duration

A measure that estimates how the price of a bond will change in response to a change in interest rates, adjusting for the bond's yield to maturity.

Convexity

The curvature of the price–yield relationship of a bond.

Yield

The annual percentage yield received from an investment, including interest or dividends, relative to the cost of that investment.