Answer:
Option “D” increases (rise) U.S. exports and increases U.S. net exports.
Explanation:
Option “D” is correct because when the United Kingdom hire a firm in the U.S. that means the export of the U.S has increased and import of the United Kingdom has increased. The net export is the amount that comes after subtracting the import from export so an increase in U.S. export will show the increase in U.S net export.
Answer:
The correct answer is letter "D": The corporate tax rate increases.
Explanation:
In case the government decides to increase the corporate tax rates, companies will have to invest more in their production process so the output will be higher as long as the revenues so that extra profit could cushion the increase in the levies. However, <em>if companies do not have enough reserves to invest, they are likely to request loans</em> that will increment the firm's debt in the long run.