Scenario 32-5

Suppose that Congress and the President enact legislation that provides a tax rebate to businesses that purchase capital goods. Assume other countries make no policy changes.
-Refer to Scenario 32-5. What happens to the interest rate, U.S. net capital outflow, and the net capital outflow of foreign countries?

Question

Scenario 32-5
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Suppose that Congress and the President enact legislation that provides a tax rebate to businesses that purchase capital goods. Assume other countries make no policy changes.
-Refer to Scenario 32-5. What happens to the interest rate, U.S. net capital outflow, and the net capital outflow of foreign countries?

Quizplus · Accepted Answer

The Answer of Scenario 32-5
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Suppose that Congress and the President enact legislation that provides a tax rebate to businesses that purchase capital goods. Assume other countries make no policy changes.
-Refer to Scenario 32-5. What happens to the interest rate, U.S. net capital outflow, and the net capital outflow of foreign countries?

Scenario 32-5 ​

Scenario 32-5