How does this policy affect national saving

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Type your question here Chapter 14 Problems and Applications Question 2

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?

Reference no: EM13154822

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