B. tax breaks for corporations that purchase new industrial equipment
This option directly encourages investment in capital goods, as it provides a financial incentive for companies to acquire new equipment, which is classified as a capital good.
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