Suppose congress in an attempt to stimulate the economy in, Ask an Expert

Economics

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?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9476087

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