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

question 47

Multiple Choice

If the federal government replaced the current income tax with a national sales tax, the price of:

• A) corporate bonds and municipal bonds would rise.
• B) municipal bonds would rise and corporate bonds would not change.
• C) corporate bonds would fall while the price of municipal bonds would rise.
• D) municipal bonds would fall while the price of corporate bonds would rise.