Which one of the following statements appropriately describes the fiscal stimulus ........

Economic Affairs Public Finance and Debt Management

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

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

It is an intense affirmative action of the government to boost economic activity in the country

It is the 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

It is an extreme affirmative action by the government of pursue its policy of financial inclusion

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Explanation:

2nd option is correct.
Fiscal stimulus refers to increasing government consumption or transfers or lowering taxes. Effectively this means increasing the rate of growth of public debt, except that particularly Keynesians often assume that the stimulus will cause sufficient economic growth to fill that gap partially or completely.
It is an intense affirmative action of the government to boost economic activity in the country