Assume That Some Large Foreign Countries Decide to Subsidize Investment

question 68

Multiple Choice

Assume that some large foreign countries decide to subsidize investment by instituting an investment tax credit. Then a small country's real exchange rate:

• A)will fall, and its net exports will rise.
• B)will rise, and its net exports will fall.
• C)and net exports will both fall.
• D)and net exports will both rise.

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Definitions:

Reformation

An equitable remedy granted by a court to correct or "reform" a written contract so that it reflects the true intentions of the parties.

Imperfectly Expressed

Describes an idea, thought, or statement that has not been articulated clearly or accurately.

Shrink-Wrap Agreement

A type of contract or terms of service that is packaged within a product's packaging, considered agreed upon when the package is opened.

Click-On

A type of contract or agreement, common in software and online services, that becomes binding when a user indicates their acceptance by clicking a button or link, usually labeled "I Agree."