The primary purpose of a "fiscal stimulus" package is to:

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AReduce government spending to control inflation.

BImplement protectionist trade policies to safeguard domestic industries.

CBalance the national budget through austerity measures.

DIncrease government spending or lower taxes to boost a sluggish economy.

Answer:

A fiscal stimulus is an expansionary fiscal policy designed to spur economic growth by increasing aggregate demand.

Related Questions:

Regarding the challenges in Kerala's agricultural sector during the first phase of development, which of the following statements is incorrect?

Kerala primarily adopted modern farming techniques, leading to high productivity levels.
Major agricultural products were often sold as raw materials in both domestic and foreign markets.
A large number of farmers possessed very small or marginal landholdings, making farming uneconomical.
The primary sector experienced negative income growth during the 1970s.

Which of the following statements regarding the minimum standard of living and India's approach to poverty are correct?

The minimum standard of living is consistent across all societies, regardless of their developmental stage.
The definition of poverty in India emphasizes attaining a minimum level of living.
What constitutes a minimum standard of living can vary significantly from one society to another.
India's poverty definition aims for a 'reasonable level of living'.

According to Dandekar and Rath, what was the poverty percentage in Kerala during 1960-61?

90.75 percent of the rural population was below the poverty line.
88.89 percent of the urban population was below the poverty line.
Their estimates did not consider locally significant items like tapioca, banana, coconut, and fish.
The poverty levels were considered accurate by subsequent studies.