Question

The financial crisis of 2007-2008 impacted many industries. As a result of the economic hard times, German automakers applied for loans to help convert their production to environmentally-friendly cars. The German government worked with the manufacturers and made 1.6 billion euros available to use as loans. The use of these loans was important to the German auto industry. The investment in plants and factories described in the passage above is considered investment in natural resources. renewable resources. capital goods. human capital.

Answer 1

It is not an investment into human capital - an investment into human capital would more mean an investment into education.

The loans seem to be specifically to convert the industry to produce something else, that is it is an investment into the machinery and means of production: capital goods (that's the correct answer!)