Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. a. How does this

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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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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:19 AM

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Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. a. How does this

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a If Congress passes an investment tax credit it subsidizes domestic investment The desire to increa...View the full answer

Principles of economics

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