Suppose that some foreign countries begin to subsidize, Business Economics

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Suppose that some foreign countries begin to subsidize

Suppose that some foreign countries begin to subsidize investment by instituting an investment tax credit.

(a) What happens to the investment in our small open economy?

(b) What happens to our trade balance?

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Business Economics: Suppose that some foreign countries begin to subsidize

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Business Economics: Suppose that some foreign countries begin to subsidize

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