Everything Else Held Constant,a Decrease in Marginal Tax Rates Would

question 49

Multiple Choice

Everything else held constant,a decrease in marginal tax rates would likely have the effect of ________ the demand for municipal bonds,and ________ the demand for U.S. government bonds.

• A)increasing;increasing
• B)increasing;decreasing
• C)decreasing;increasing
• D)decreasing;decreasing

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Definitions:

Workers

Individuals or employees who perform tasks or labor for payment in various sectors of an economy.

Output

The volume of output in terms of products or services from a firm, industry, or the economy as a whole during a defined period.

Average Total Costs

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.

Average Variable Cost

The total variable costs (costs that change with output level) of production divided by the quantity of output produced.