U.S.government policy to stimulate research and development activities would be most likely to succeed if it involved
A)interest rate policy.
B)corporate tax policy.
C)personal income tax policy.
D)payroll tax policy.

Question

Quizplus · Accepted Answer

Corporate tax policy can incentivize firms to invest in research and development by providing tax credits or deductions for such activities. This reduces the cost of investment for firms and can encourage them to undertake more R&D projects. Other policies such as interest rate, personal income tax, or payroll tax policies may have some impact on R&D investment, but they are less directly linked to the behavior of firms engaged in R&D.

USGovernment Policy to Stimulate Research and Development Activities Would Be