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
Governments can invest in capital goods by incentivizing companies to update their machinery and equipment through tax breaks or subsidies. This helps improve efficiency and productivity in the manufacturing sector, ultimately benefiting the economy as a whole.