Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — It is an intense affirmative action of the Government to boost economic activity in the country
Concept & Option Breakdown
Standard Reference VerifiedA 'fiscal stimulus' consists of counter-cyclical fiscal policy actions taken by the government—such as increasing public spending on infrastructure/projects or reducing tax rates—to stimulate aggregate demand and revitalize economic activity during a slowdown or recession ('priming the pump').
Fiscal stimulus = Government action using tax cuts and increased public expenditure to stimulate/boost aggregate demand and economic growth.
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