The government gives stimulus checks of $1000 to 100 million families in the United States. Each of these families spends 80% of their check this year and uses the rest to buy stock in the stock market. Assuming no other changes in the spending of these families and that the goods they purchased were entirely produced in the United States, how would the stimulus checks affect US GDP?

Answer rating: 100% (QA)

Impact of Stimulus Checks on US GDP This scenario involves two distinct economic effects on US GDP 1 ... View the full answer