How do governments invest in capital goods?
A.
by providing free medical care for all of their citizens
B.
by providing housing assistance for all of their citizens
C.
by giving tax breaks to companies that protect the environment
D.
by giving tax breaks to manufacturers that update their machinery
D. by giving tax breaks to manufacturers that update their machinery
The correct answer is D. Governments invest in capital goods by giving tax breaks to manufacturers that update their machinery. This is done to encourage companies to invest in new and improved equipment, which can enhance productivity and economic growth. It allows businesses to deduct a portion of the cost of purchasing or upgrading machinery or equipment from their taxable income, providing an incentive for investment in capital goods.
The correct answer is D: by giving tax breaks to manufacturers that update their machinery.
Governments invest in capital goods by encouraging and supporting businesses to improve their production capabilities and technology. One way they can do this is by offering tax incentives or breaks to manufacturers that update their machinery. By providing these tax breaks, governments aim to stimulate investment in new equipment and technology, which can lead to increased productivity, economic growth, and job creation.
To verify this answer, you can explore government policies and incentives related to investment in capital goods. This may involve studying tax laws, researching government programs and initiatives aimed at promoting economic development and investment, and analyzing case studies or articles that discuss specific examples of governments providing tax breaks for manufacturers.
It's crucial to conduct thorough research and consult reliable sources to get the most accurate and up-to-date information about government investment strategies in capital goods.