If the marginal income tax rates for American taxpayers falls, the expected outcome in the Treasury...
If the marginal income tax rates for American taxpayers falls, the expected outcome in the Treasury market for bonds would be that
demand would __________
supply would ___________
price would ____________
yield would ____________
a.rise; remain the same; rise; fall
b.fall; fall; fall; rise
c.fall; rise; remain the same; remain the same.
d.rise; rise; remain the same; remain the same.
Homework Answers
"A"
this will increase the demand for the bonds as people with higher disposable income will be demanding more bonds, the supply would remain the same, at a higher demand the price would rise and the interest rate and yield would fall. The answer is "A".
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If the marginal income tax rates for American taxpayers falls,
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