C mathxl.com/Student/PlayerTest.aspx?testld=226282502 . . . Apps . NJCU Email M Gmail Bb Blackboard Learn ) ExamFX | Launch C... in Linkedin Account Fidelity Portfolio TD TD Ameritrade Robinhood Portfolio y! Yahoo Finance CNBC Markets Fox Business Markets ECON3641402 Money & Banking Spring 2021 Emilio Schmidt & | 03/02/21 9:18 PM Quiz: Chapter 6 Quiz Time Remaining: 02:40:18 Submit Quiz This Question: 1 pt 4 of 4 (1 complete) This Quiz: 4 pts possible What effect would reducing income tax rates have on the interest rates of municipal bonds? A. Interest rates would rise because the reduction in income tax rates would make the tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds. O B. Interest rates would fall because the reduction in income tax rates would make the tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds O C. Interest rates would rise because Treasury securities are now less valuable and more people will want to hold municipal bonds. O D. Interest rates would fall because Treasury securities are now less valuable and more people will want to hold municipal bonds. Would interest rates of Treasury securities be affected by the tax rate change? O A. Yes, because the reduction in the tax-exempt privilege in municipal bonds would raise the relative value of Treasury securities, making Treasury securities more desirable. O B. Yes, because the increase in interest rates would increase the desire to hold more municipal bonds and less Treasury securities. O C. No, there would be no impact on the market for Treasury securities. O D. Yes, because municipal bonds are less risky than Treasury securities, the demand for Treasury securities will decrease. Click to select your answer. ? Type here to search O ew X a N 9:18 PM 3/2/2021