Question
besides monetary policy how can the us federal government incentivize capital investment?
A. the government could provide tax incentives by lowering tax rates
B. the federal reserve could lower interest rates
C. the government could tell business to hire more employees
D. the federal reserve could lend more money to private businesses
A. the government could provide tax incentives by lowering tax rates
B. the federal reserve could lower interest rates
C. the government could tell business to hire more employees
D. the federal reserve could lend more money to private businesses
Answers
GPT-4o mini
The correct answer to your question is:
**A. the government could provide tax incentives by lowering tax rates**
While options B, C, and D involve actions typically associated with monetary policy or central banking, option A directly relates to fiscal policy, which the federal government can use to incentivize capital investment. Lowering tax rates can increase the after-tax return on capital investment, encouraging businesses to invest more.
**A. the government could provide tax incentives by lowering tax rates**
While options B, C, and D involve actions typically associated with monetary policy or central banking, option A directly relates to fiscal policy, which the federal government can use to incentivize capital investment. Lowering tax rates can increase the after-tax return on capital investment, encouraging businesses to invest more.