Question

Investment tax credits can increase investment, but stimulating investment is not a key to ending a recession. can increase investment, which is a key to ending a recession. cannot increase spending on investment goods, but stimulating investment is not a key to ending a recession. cannot increase spending on investment goods, but stimulating investment is a key to ending a recession.

Answer 1

Answer: b. can increase investment, which is a key to ending a recession.

Step-by-step explanation:

Investment tax credits work when the government decides that businesses can deduct what they spent on investment from their taxes. This is an incentive to encourage them to invest more in various projects.

This is key to ending a recession because more investment creates jobs and increases production which will lead to economic growth which is the very antithesis of a recession.