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
what
A. By providing free medical care for all of their citizens
100%
The correct answer is D. Governments invest in capital goods by giving tax breaks to manufacturers that update their machinery.
To determine the answer to this question, it is important to understand what capital goods are and how governments invest in them. Capital goods are long-term assets, such as machinery, equipment, and infrastructure, that are used in the production of goods and services.
Governments can encourage investment in capital goods by implementing policies that provide incentives for manufacturers to update their machinery. By giving tax breaks to manufacturers that invest in new and efficient equipment, governments aim to stimulate economic growth, increase productivity, and promote technological advancements within the manufacturing sector.
Therefore, option D is the correct answer as it aligns with the understanding of how governments invest in capital goods.