Suppose that Congress is considering an investment tax credit, which subsidizes domestic
Chapter 32, Problem Problems and Applications 32.2(choose chapter or problem)
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, theinterest rate, the exchange rate, and the tradebalance?b. Representatives of several large exportersoppose the policy. Why might that be thecase?
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