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In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit's city council is considering passing a statue that would give investment tax credits to auto manufacturers. Effectively, this would reduce auto manufacturer's costs of using capital and high-tech equipment in their production processes.

What is the likely impact of this statue on the number of workers this automaker hires?

a. It will increase
b. It will not increase
c. It will decrease

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939589

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