If income tax rates rise, then
A. the prices of municipal bonds will fall.
B. the prices of Treasury bonds will rise.
C. the interest rate on Treasury bonds will rise.
D. the interest rate on municipal bonds will rise.
Answer:C
If income tax rates rise, then
A. the prices of municipal bonds will fall.
 B. the prices of Treasury bonds will rise.
 C. the interest rate on Treasury bonds will rise.
 D. the interest rate on municipal bonds will rise.
