The exemption of municipal bond interest income from federal personal income taxes
A. generally benefits the wealthy most.
B. does not help municipal governments lower financing costs because it is offset by shifting increasing municipal bond rates.
C. does not help municipal governments lower financing costs because it is offset by shifting falling municipal bond rates.
D. is an indirect tax on the underlying municipal bonds that generate the interest income.
Answer: A
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If the American Medical Association lobbied successfully to eliminate licensing laws for physicians,
a. physicians' salaries would increase b. the supply curve of physicians would shift to the left c. physicians' salaries would decrease d. the supply curve of physicians would become more inelastic e. the supply curve of physicians would become more elastic
Using the supply and demand model, what would happen if foreign investors no longer want to loan money to the United States?
a. Interest rates will decrease, and investment will decrease. b. Interest rates will increase, and investment will increase. c. Interest rates will increase, and investment will decrease. d. Interest rates will decrease, and investment will increase.