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The International Monetary Fund (IMF) is an organization of 189countries that is focused on promoting growth and reducing poverty.An article in the Wall Street Journal in 2019, before the start ofthe Covid-19 pandemic, discussed an IMF proposal as follows: "Inits annual report on global fiscal policies, the IMF singled outGermany, Korea, and Australia as places where fiscal stimulus couldmake sense." Source: Brian Blackstone, "At the IMF, Germany Comesunder Pressure to Stimulate Growth," Wall Street Journal, April 14,2019. a. What does the article mean by "fiscal stimulus"? Whatactions would these countries take if they decided to engage in apolicy of fiscal stimulus? A. "Fiscal stimulus" refers to anexpansionary monetary policy-decreasing interest rates orincreasing the money supply-to increase aggregate demand and realGDP. B. "Fiscal stimulus" refers to an expansionary fiscalpolicy-decreasing interest rates or increasing the money supply-toincrease aggregate demand and real GDP. C. "Fiscal stimulus" refersto an expansionary fiscal policy-increasing government purchases ordecreasing interest rates-to increase aggregate demand and realGDP. D. "Fiscal stimulus" refers to an expansionary fiscalpolicy-increasing government purchases or decreasing taxes-toincrease aggregate demand and real GDP.

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