What effect on domestic investment spending within the us

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Reference no: EM131022778

Former congressman and presidential candidate Richard Gephardt once proposed that tariffs be imposed on imports from countries with which the United States has a trade deficit. If this proposal were enacted and if it were to succeed in reducing the U.S. current account deficit to zero, what would be the likely effect on domestic investment spending within the United States? Assume that no other federal government economic policy is changed. (Hint: Use the saving and investment equation to answer this question.)

Reference no: EM131022778

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