Which of the Following Statements Is Most Correct

question 5

Multiple Choice

Which of the following statements is most correct?

• A) Indexing tax brackets reduces the extent of "bracket creep."
• B) Bonds issued by a municipality such as the city of Miami would carry a lower interest rate than bonds with the same risk and maturity issued by a private corporation such as Florida Power & Light.
• C) Our federal tax laws tend to encourage corporations to finance with debt rather than with equity securities.
• D) Our federal tax laws encourage the managers of corporations with surplus cash to invest it in stocks rather than in bonds. However, other factors may offset tax considerations.
• E) All of the statements above are true.

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Definitions:

Stereotypes

Overgeneralized beliefs about a particular category of people that simplifies complex individual variations to simplistic and often inaccurate labels.

Group Membership

The state or fact of being a part of a group that shares common interests or characteristics.

Widely Held Beliefs

Opinions or convictions that are commonly accepted by a large number of people within a society.

Racial Prejudice

Negative attitudes or beliefs held toward individuals or groups based on their race or ethnicity.