In a progressive tax system,an investor can benefit from tax-exempt bonds when
A)the investor's marginal tax rate is equal to the marginal investor.
B)the investor's marginal tax rate exceeds that of the marginal investor.
C)the investor's marginal tax rate is less than that of the marginal investor.
D)None of the above.

Question

Quizplus · Accepted Answer

In a progressive tax system, tax-exempt bonds are more beneficial to investors with higher marginal tax rates because the tax savings from the exemption are greater.

In a Progressive Tax System,an Investor Can Benefit from Tax-Exempt