All of the mentioned factors can encourage investment in capital goods. Option D
Which of the following would encourage investment in capital goods?
New technology can make new investments more profitable by making work faster, cheaper, and creating new chances to sell things. When companies think they can make more money from buying new technology, they are more likely to spend money on new equipment.
More money saved by families means there is more money available for investment in the economy. Saving more money allows us to have more money to invest in things like equipment and buildings. This means that because there is more money saved, businesses might want to spend it on new things like machines, tools, and buildings.
Which of the following would encourage investment in capital goods?
A. an increase in the profitability of new investment due to technological change
B. an increase in household savings
C. a decrease in the government deficit
D. all of the above