Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. a. How does this
Question:
Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment.
a. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?
b. Representatives of several large exporters oppose the policy. Why might that be the case?
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a If Congress passes an investment tax credit it subsidizes domestic investment The desire to increa...View the full answer
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