The effect a change in the sales tax has on investment depends, in part, on how sensitive net exports are to changes in the exchange rate.

Name: The effect a change in the sales tax has on investment depends, in part, on how sensitive net exports are to changes in the exchange rate.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

A change in sales tax can influence domestic prices, affecting the exchange rate, which in turn impacts net exports and investment decisions.

The Effect a Change in the Sales Tax Has on Investment