Suppose It Is an Election Year and the Economy Is

Question 87
Multiple Choice

Suppose it is an election year and the economy is in a recession.The opposition candidate proposes an investment tax credit to take effect next year after he takes office.If the public believes the opposition candidate has a good chance of winning,the effect of this promise will likely be to: A) increase investment both this year and next year. B) decrease investment both this year and next year. C) increase investment this year and decrease it next year. D) decrease investment this year and increase it next year.