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

Challenger App

★

1M+ Downloads

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:

Which of the following statements correctly describes the government's commitment to education in Kerala?

The State Government and Local Self-Government institutions are committed to providing good quality infrastructure in educational institutions.
There is a strong emphasis on maintaining a hygienic environment within educational institutions by the authorities.
The government's role is limited to policy-making, with infrastructure development left to private entities.

What are the eligibility criteria for the Norka Pravasi Startup Programme (NPSP)?

Applicants must have resided or worked abroad for a minimum of 2 years.
The program is open to all individuals who have lived outside Kerala for any duration.
Applicants must demonstrate a commitment to returning to Kerala permanently.
There is no minimum duration requirement for staying or working abroad.