How do lower interest rates impact consumer spending in the context of fiscal policy and economic stimulus?

Lower interest rates make borrowing money cheaper for consumers. When people can take out loans or use credit cards at a lower cost, they are more likely to spend money on big purchases, like cars or homes, and even everyday items. This increase in consumer spending can help boost the economy because businesses see more sales and can hire more workers. For example, if a family decides to buy a new car because the loan interest is low, that purchase helps the car dealership and its employees. Overall, lower interest rates encourage people to spend, which is a key part of economic growth.