How will this policy affect national saving

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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

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