How Would You Expect the Mayors of Most U

question 114

Multiple Choice

How would you expect the mayors of most U.S. cities to respond to a proposed significant reduction in U.S. income taxes?

• A) Favorably, since this will significantly increase the demand for municipal bonds
• B) Unfavorably, the demand for municipal bonds will fall and their yields will increase
• C) Favorably, the price of municipal bonds should increase and their yields fall
• D) No reaction, this should have no impact on municipal bonds at all

---

Definitions:

Substitution

A method used in algebra and calculus involving replacing a variable with its corresponding value or another expression to simplify or solve an equation.

Equations

Mathematical statements asserting the equality between two expressions.

Consistent

In mathematics, systems of equations are considered consistent if they have at least one set of solutions.

Consistent

In mathematics, particularly in systems of equations, it refers to a system that has at least one solution.