Fiscal stimulus includes all of the following except:
A) Government spending for highways.
B) Government purchase of military goods.
C) An increase in saving.
D) A tax cut.

Question

Quizplus · Accepted Answer

Fiscal stimulus refers to government spending or tax cuts that are intended to increase economic activity and promote growth. Options A, B, and D are all examples of fiscal stimulus measures. However, an increase in saving is not a fiscal stimulus measure as it involves individuals and households choosing to save more of their income rather than spend it, and is not directly influenced by government policy.

Fiscal Stimulus Includes All of the Following Except