Initially,there is a trade deficitin a small open economy with perfect capital mobility.Suppose an investment tax credit is introduced to give a tax advantage to any firm building a new factory or buying a new piece of equipment.Which of the following statement is correct?

The economy ends up with a negative NCO.

The economy ends up with a positive NCO.

The economy ends up with a zero NCO.

It does not provide sufficient information to conclude whether the economy ends up with a positive, zero, or negative NCO.