In Late 2012,President Obama Proposed Raising the Top Income Tax

question 33

Multiple Choice

In late 2012,President Obama proposed raising the top income tax rate.All of the following are likely impacts of higher income tax rates on bonds EXCEPT

• A) higher interest rates on Treasury bonds.
• B) lower interest rates on Municipal bonds.
• C) increased demand for Municipal bonds.
• D) lower prices for Municipal bonds.

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Definitions:

Preverbal Iq

The level of intelligence or cognitive abilities demonstrated by individuals, typically infants or young children, before they develop the ability to speak or use language extensively.

Phrenology

An outdated and discredited theory that the shape and contours of the skull could determine a person’s personality traits and mental abilities.

Relative Power

A concept describing the amount of influence or control one entity has in comparison to another within a particular context or relationship.

Skull

The bony structure in the head, containing the brain and supporting the facial structure.