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April 21, 2014

Homework Help: Macroeconomics - Investment Tax Credit

Posted by Anonymous on Monday, December 14, 2009 at 11:22am.

Assume that some large foreign countries decide to subsidize investment by instituting an investment tax credit. Then the home country's real exchange rate will fall and its net exports will rise.

I completely don't understand the above statement because I don't know what investment tax credit is. What is it?

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