ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to lockdown the economy
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to make money readily available so people will spend it in the economy
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to encourage or invigorate the economy
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to encourage people to “save their money for a rainy day”
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Detailed explanation-1: -Economic stimulus is action by the government to encourage private sector economic activity. To stimulate the economy, the government adopts targeted, expansionary policies. Economic stimulus may be related to monetary policy carried out by the Federal Reserve.
Detailed explanation-2: -During a recession, a well-designed fiscal stimulus-a government spending increase, tax cut, or both-can shore up demand for goods and services and thereby help to reduce the recession’s depth and length and make the recovery more robust.
Detailed explanation-3: -In the short term, governments may focus on macroeconomic stabilization-for example, expanding spending or cutting taxes to stimulate an ailing economy, or slashing spending or raising taxes to combat rising inflation or to help reduce external vulnerabilities.
Detailed explanation-4: -Promote economic growth through innovation. Strategic immigration reform. End the war on drugs. Require unemployed workers to volunteer. Cut health care costs. Remove unnecessary and unclear laws. 23-Jan-2013