Detailed explanation and options for the selected question.
What is “fiscal stimulus”?
A.
Increase in government spending and/or reduction in taxes to boost the economy
B.
Decrease in government borrowing
C.
Increase in interest rates
D.
Promotion of exports through subsidies
Explanation:
Fiscal stimulus involves increased government spending or tax cuts to boost economic activity. It does not directly relate to borrowing, interest rates, or export promotion.