Everything else held constant, 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.

Everything else held constant, 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





Answer: B


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