Which of the following would encourage investment in capital goods?

A.
tax breaks for corporations that pay for their employees' education

B.
tax breaks for corporations that purchase new industrial equipment

C.
unemployment insurance for temporarily unemployed workers

D.
crop insurance for farmers who experience bad harvests

1 answer

B. tax breaks for corporations that purchase new industrial equipment

Tax breaks for corporations that purchase new industrial equipment directly incentivize businesses to invest in capital goods, as it reduces the overall cost of making such investments.