The Adoption of an Investment Tax Credit in a Small

Multiple Choice

The adoption of an investment tax credit in a small open economy is likely to lead to:

A) no change in either domestic investment or domestic saving in the small open economy.
B) an increase in both domestic investment and domestic saving in the small open economy.
C) an increase in domestic saving but no change in domestic investment in the small open economy.
D) an increase in domestic investment but no change in domestic saving in the small open economy.