How will this policy affect national saving

Reference no: EM13186032

Suppose Congress (in an attempt to stimulate the economy in both the short and long run) passes an investment-tax credit, which subsidizes domestic investment.

How will this policy affect (comparing the state of the economy prior to the enactment of the Investment Tax Credit):

1) national saving?

2) domestic investment?

3) net capital outflow?

4) the real interest rate?

5) the exchange rate?

6) the trade balance?

Reference no: EM13186032

Questions Cloud

What happens to the demand for loanable funds : Using the 3-graph model developed in chapter 14, consider first the impact on the demand for loanable funds. If businesses respond as expected to the investment-tax credit, what will happen to the demand for loanable funds Given this, what, if any..

Relationship with the customer : Why is Prius's success dependent on Toyota's relationship with the customer? Do you think Toyota has demonstrated their motto that "Customer is King/Queen" through development of the Prius? If so, how?

News-gathering gone too far : “You can’t have a free press without the press being free. This means uninhibited inquiry.” Vs “Decency should trump news-gathering that invades privacy, interferes with criminal investigations, and nothing to do with serving a public good.”

Single binary search tree : You must store the words and the counts of the words in a single binary search tree and each word occurring in the text can only be stored once in the tree

How will this policy affect national saving : Suppose Congress (in an attempt to stimulate the economy in both the short and long run) passes an investment-tax credit, which subsidizes domestic investment. How will this policy affect (comparing the state of the economy prior to the enactment o..

State what volume should dilute ki solution : what volume should you dilute 43.5mL of a 4.00M KI solution so that 24.0mL of the diluted solution contains

What type of market structure would farmers like to convert : The story states that good weather has resulted in an unexpectedly large crop, which we know will increase supply and reduce the market price for their coffee beans. If all of the farmers know that picking this large crop will guarantee them lowe..

State what is the perecent of nacl by mass in the sample : A smple of mixture of NaCl, Caco3 and SiO2 weighed 7.30 grams. During the water wash the sample lost 2.21 grams. After treatment with HCL, the sample weighed 2.05 grams.

Write a program that does simple packet routing : Write a program that does simple packet routing and your program will take three command-line arguments:

User Account

All Pages