UPSC General Studies Solved Paper - General Studies-2011

  • question_answer
    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 of 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

    Correct Answer: B

    Solution :

    Exp. [b] Fiscal stimulus involves affirmative action like tax breaks, boosting public investments etc to overcome the downward effect of business contraction.


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