The Adoption of an Investment Tax Credit in a Small

question 85

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.

---

Definitions:

Directors

Individuals elected by shareholders to oversee the management of a corporation and make decisions on its behalf.

Policies

Documents or statements of principles and guidelines, crafted to regulate, direct, or guide decisions and actions in organizations or governance.

Unocal v. Mesa Petroleum

A landmark legal case that established important principles in the area of corporate takeover defense and directors' fiduciary duties.

Business Judgment Rule

A principle that protects corporate executives from liability for decisions made in good faith and believed to be in the best interest of the company.