What affect would reducing ncome tax rates have on the interest rates of unkelbords? A Interest rates would fail because the reduction in income tax rates would make the tax exempt privilege for municipal bonds loss valuable and reduce the demand for municipal bonds. O B. Interest rates would rise because the reduction in income tax rates would make the tax exempt privige formunicipal bondsfoss valuable and reduce the demand for municipal bonds OC Interest rates would rise because Treasury securities are now les valuable and more people will want to hold municipal bonde OD. Interest rates would fall because Treasury secures we now les valuable and more people will want to hold municipal bords Would interest rates of Treasury securities be affected by the tax rato change SA Yes, because the reduction in the tax-exempt prelepe in municipal bonds would raise the relative value of Treasury securities, making my securities more desirable OB No, there would be no impact on the market for Treasury securities OC. Yes, because the increase in interest rates would increase the desire to hold more murio bonds and Treasury secure OD Yes, because municipal bonds are less risky a Treasury demand for Treasures will de

What effect would reducing income tax rates have on the interest rates of municipal bond A interests would full because the reduction in income taxistes would make the tax exempt privilege for muper bonds less valuable and reduce the demand for municipal bonds O8les would rise because the reduction income tax rat able and reduce the demand for municipal bands OC. Interest would OD because Tury securities are would fall because Tremury secures are now Would interest rates of Treasury secures be affected by the lax rate change? A. Yes, because the reduction in the tax-exempt privilege in muni bends would OB No there would be ne impact on the market for Treasury secutes O. Yes, because the inces in nerest rates would increase One meel bonds a risky than Treasury securities