Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 18: Q.6 (page 451)

What are some steps the government can take to encourage research and development?

Short Answer

Expert verified

Direct government funding of R&D, tax incentives for R&D, protection of intellectual property.

Step by step solution

01

Definition

Fiscal Policy:

The term fiscal policy refers to government initiatives that aid in economic stabilization. There are two forms of fiscal policy: contractionary and expansionary, and the government employs both depending on the state of the country.

02

Explanation

Direct government support of R&D, tax incentives for R&D, intellectual property protection, and developing cooperative links between universities and the business sector are just a few of the policy options available to increase the rate of return on new technology and encourage its development.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why have many education experts recently placed an emphasis on altering the incentives that U.S. schools face rather than on increasing their budgets? Without endorsing any of these proposals as especially good or bad, list some of the ways in which incentives for schools might be altered.

Sketch a diagram of how sustained budget deficits cause low economic growth.

Explain how cuts in funding for programs such as Head Start might affect the development of human capital in the United States.

What are some fiscal policies for improving a society’s human capital?

During the most recent recession, some economists argued that the change in the interest rates that comes about due to deficit spending implied in the demand and supply of financial capital graph would not occur. A simple reason was that the government was stepping in to invest when private firms were not. Using a graph, explain how the use by the government in investment offsets the deficit demand.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free