A stimulus is a package of economic measures put together by a Govt. to stimulate a floundering economy. The objective of a stimulus package is to reinvigorate the economy and prevent or reverse a recession by boosting employment and spending.Types of StimulusMonetary StimulusFiscal StimulusQuantitative EasingThe monetary stimulus consists of cutting interest rate where fiscal stimulus has a cutting taxes or increased spending. Quantitative easing is an expansionary monetary policy in which the country's central bank purchases a large number of financial assets such as bonds from commercial banks and other financial institutions.
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