If municipal bonds were to lose their tax-free status, then the demand for Treasury bonds would shift ________, and the interest rate on Treasury bonds would ________.

If municipal bonds were to lose their tax-free status, then the demand for Treasury bonds would shift ________, and the interest rate on Treasury bonds would ________.



A) rightward; fall
B) rightward; rise
C) leftward; fall
D) leftward; rise


Answer: A) rightward; fall


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Marketing Chapter 5

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