Marginal benefit refers to the additional benefit that your activity provides to you

A liquidity trap exists when a change in the money supply immediately and drastically affects interest rates.

a. true b. false

Everything else held constant, if the tax-exempt status of municipal bonds were eliminated, then

A) the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds. B) the interest rate on municipal bonds would equal the rate on Treasury bonds. C) the interest rate on municipal bonds would exceed the rate on Treasury bonds. D) the interest rates on municipal, Treasury, and corporate bonds would all increase.