Which one of the following statements appropriately describes the “fiscal stimulus” ?

Question

Which one of the following statements appropriately describes the “fiscal stimulus” ?

(a) It is a massive investment by the government in manufacturing sector to ensure the supply of goods to meet the demand surge caused by rapid economic growth.

(b) It is an intense affirmative action of the government to boost economic activity in the country.

(c) It is government’s intensive action on financial institutions to ensure disbursement of loans to agriculture and allied sectors to promote greater food production and contain food inflation.

(d) It is an extreme affirmative action by the government to pursue its policy of financial inclusion.

Monjur Alahi

7 views

2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

(b) Governments use fiscal policy to influence the level of aggregate demand in the economy. It is an effort to achieve economic objectives of price stability, full employment, and economic growth.

7 views Answered 2023-02-05 15:29