Why might the government decide to send stimulus checks?

Question

A) to improve public opinion about government
B) to stimulate changes in prices
C) to help stimulate the nation's GDP
D) to stimulate the Dow Jones

Answer 1

The government might decide to send stimulus checks primarily for option C) to help stimulate the nation's GDP.

Stimulus checks are often used as a tool to increase consumer spending during economic downturns or crises. By providing direct payments to individuals, the intention is to boost demand for goods and services, which in turn can lead to increased production and job creation, ultimately contributing to the growth of the Gross Domestic Product (GDP).