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nika2105 [10]
3 years ago
12

Oceania is a small open economy. Suppose that a large number of foreign countries begin to subsidize investment by instituting a

n investment tax credit (while adjusting other taxes to hold their tax revenue constant), but Oceania does not institute such an investment subsidy.
a. What happens to world investment demand as a function of the world interest rate?
b. What happens to the world interest rate?
c. What happens to investment in Oceania?
d. What happens to Oceania
Business
1 answer:
Dmitrij [34]3 years ago
6 0
B
I think that’s what it is
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