An Increase in Marginal Tax Rates Would Likely Have the Effect

question 81

Multiple Choice

An increase 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:

Seller Receives

The final amount a seller gets after transaction costs, taxes, or any deductions when a good or service is sold.

Taxes Levied

Charges imposed by governments on individuals or entities to fund government spending on public services and infrastructure.

Tax Burden

The total amount of tax levied on an individual or entity, indicating the actual economic impact of taxation on wealth.

Tax Imposed

A financial charge or levy placed by a government on an individual or an entity to fund public expenditures.