For a tax-exempt municipal security, as the marginal tax rate ________, the price of a tax?exempt municipal security will ________.

Name: For a tax-exempt municipal security, as the marginal tax rate ________, the price of a tax?exempt municipal security will ________.
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Question

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As the marginal tax rate declines, the after-tax return on taxable securities will also decline. This will make tax-exempt municipal securities more attractive to investors, which will increase their price.

For a Tax-Exempt Municipal Security, as the Marginal Tax Rate