How does a stimulus package work?
What is a Stimulus Package?A stimulus package refers to various economic strategies implemented by a government or central bank to revive a sluggish economy. These actions are generally taken during times of economic distress, like recessions or financial turmoil, with the core objective of enhancing expenditure and output. By providing capital into the economy either directly or indirectly, governments seek to assist businesses, encourage consumer expenditure, and ultimately promote economic expansion.Components of a Stimulus PackageStimulus packages typically comprise various components, each aimed at addressing specific economic challenges:1. Tax Cuts: By reducing personal and corporate taxes, the government aims to increase…
