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Stimulus


Stimulus

A stimulus is a fiscal policy to stimulate the economy. The goal of a stimulus is to generate economic growth in a recession. The latest US government stimulus is the American Recovery and Reinvestment Act of 2009.

About Stimulus

When a country's economy faces a downturn, the government can elect to generate economic growth with a stimulus. A stimulus is a spending of government money to elicit a response throughout the economy. Another form of stimulating the economy is lowering interest rates creditors offer, to encourage spending.

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