Question

Everything else held constant, a decrease in marginal tax rates would likely have the effect of ________ the demand for municipal bonds, and ________ the demand for U.S. government bonds.

Answer 1

Answer:

DECREASE AND INCREASE

Explanation:

The marginal tax rate is the type of percentage that comes with or equate with the value of the income you are earning. The lower your dollar income is, the lower the tax to be collected it vice versa. This type of tax is made use of based on the highest tax level on taxes on income that has been attained

The marginal tax rate is calculated or determined by the "change in the tax payment divided by income change or by dividing the difference that occurs in the tax with the amount realized from the investment."