An Investment Tax Credit, Typically Used to Stimulate Investment Spending

An investment tax credit, typically used to stimulate investment spending considered to be too low,

A) increases the cost of capital to firms through the addition of new taxes.
B) provides a taxpayer subsidy directly to firms making capital expenditures.
C) provides little incentive for a permanently higher level of capital stock.
D) should provide a burst of net investment activity in the economy, but little support has been found for this hypothesis.
E) has no effect on the volatility of investment, since investment is low when such a policy is warranted and consequently restored only to where it should have been.