How policy affect national saving and domestic investment

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Reference no: EM13184504

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 this be the case?

Reference no: EM13184504

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