Business, 19.01.2021 18:50 connorvoss5805
Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. Which of the following accurately describes the effect of an investment tax credit?
1. Real interest rate increases
2. Net capital outflow decreases
3. Exchange rate decreases
4. Trade balance increases
5. National saving increases
6. Domestic investment decreases
As a result of the investment tax credit, domestic goods will become (more or less) expensive for foreigners to purchase.
Answers: 3
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Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment....
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