When production is outsourced, a domestic fiscal stimulus could lead to INCREASED IMPORTS.
Let's first go through the definition of fiscal policy. The entire scope of government spending and expenditures can be summed up as "fiscal policy."
Taxes, transfer payments, and government spending are all examples of fiscal policy that affect overall demand.
However, given that we are discussing outsourced production, it is important to remember that this market practice refers to hiring a third party to carry out tasks on the company's behalf.
When production is outsourced, workers from outside the company are hired to put the product together and develop it.
So when production is outsourced, for sure, the domestic fiscal stimulus will lead to higher or increased imports in these circumstances.
Read more about fiscal stimulus here: https://brainly.com/question/28216300
#SPJ4
