If income tax rates were lowered, then
A. the interest rate on municipal bonds would fall.
B. the interest rate on Treasury bonds would rise.
C. the interest rate on municipal bonds would rise.
D. the price of Treasury bonds would fall.
Answer:C
If income tax rates were lowered, then
A. the interest rate on municipal bonds would fall.
 B. the interest rate on Treasury bonds would rise.
 C. the interest rate on municipal bonds would rise.
 D. the price of Treasury bonds would fall.
