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Suppose the City of Cincinnati Has a High Credit Rating

Question 23

Multiple Choice

Suppose the city of Cincinnati has a high credit rating.


A) The high credit rating and the tax status of municipal bonds should both make the interest rate lower than otherwise.
B) The high credit rating and the tax status of municipal bonds should both make the interest rate higher than otherwise.
C) The high credit rating should make the interest rate higher than otherwise.The tax status of municipal bonds should make the interest rate lower than otherwise.
D) The high credit rating should make the interest rate lower than otherwise.The tax status of municipal bonds should make the interest rate higher than otherwise.

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