Directions: In each of the questions given below, a passage has been given which are either situational based or describes a scenario. Below each passage, a question has been given which is framed to make you infer something out of it. Mark out the correct inference as your answer.
The government has announced a stimulus package totaling ₹21 Lakh crore, a trifle over 10% of GDP. The problem with this is not so much that, of the total stimulus planned, actual additional spending by the government amounts to just about 1% of GDP, as that very little of it is planned for boosting investment in capital formation that would create sustainable demand.
Which among the following can be inferred from the above passage?
The government must spend money, in large quantities, to create the demand needed to fuel vigorous economic growth.
The easiest way to kick start investment is by designating and funding special vehicles to take over and complete stalled real estate and other projects in the private sector.