Multiple Choice
If a country repeals an investment tax credit that,subsidizes domestic investment,
A) net capital outflow and the real exchange rate rise.
B) net capital outflow rises and the real exchange rate falls.
C) net capital outflow falls and the real exchange rate rises.
D) net capital outflow and the real exchange rate fall.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Trade policies<br>A)alter the trade balance because they
Q16: An increase in a country's budget deficit<br>A)increases
Q17: A rise in the budget deficit<br>A)shifts both
Q18: When fear of default on bonds issued
Q21: A decrease in the budget deficit causes
Q22: An increase in the U.S.government budget deficit
Q23: If a government increases its budget deficit,then
Q24: Suppose that India has a government budget
Q25: When a country experiences capital flight its
Q181: When Mexico suffered from capital flight in