Initially, there is a trade surplus in a small open economy with perfect capital mobility. Suppose an investment tax credit is introduced to give a tax advantage to any firm building a new factory or buying a new piece of equipment. Which of the following statement is comect? O Net export will be positive. Net export will be zero. Net export will be negative. It does not provide sufficient information to conclude if net export will be positive, negative, or zero

Initially, there is a trade surplus in a small open economy with perfect capital mobility. Suppose an investment tax credit is introduced to give a tax advantage to any firm building a new factory or buying a new piece of equipment. Which of the following statement is comect? O Net export will be positive. Net export will be zero. Net export will be negative. It does not provide sufficient information to conclude if net export will be positive, negative, or zero

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 5E

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