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Bautis Financial

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What Is An Economic Stimulus Anyway?

Economic stimulus is when the government boosts private sector growth during a recession. “Fiscal stimulus” includes reducing taxes, regulation reduction, and deficit spending. Then there is “monetary stimulus” done by central banks such as interest rate cuts. 

During a recession economic growth slows and demand for products decreases. A stimulus package is a combination of fiscal and monetary actions to stimulate economic activity.  The goal of the stimulus is not to replace private sector activity but to revive it.

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Bautis Financial
7 North Mountain Ave
Montclair, NJ 07042
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862-205-5800
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