What is likely to be a direct consequence of fiscal stimulus?

A direct consequence of fiscal stimulus is heightened economic activity. Fiscal stimulus involves government actions, such as increased spending or tax cuts, aimed at boosting economic growth. When the government injects funds into the economy, it can lead to immediate increases in consumer demand and spending. This, in turn, spurs businesses to ramp up production, leading to more jobs and potentially higher wages. The resulting increase in economic activity can help pull an economy out of a recession or slow period by stimulating growth and encouraging investment.

The other options reflect potential negative outcomes or misconceptions that are unlikely to occur as a direct consequence of fiscal stimulus. For instance, fiscal stimulus is generally aimed at reducing unemployment rates, increasing consumer confidence, and improving government revenue in the long run by fostering growth, rather than causing decreases.