Explanation:

• Option A is incorrect because maintaining price stability is primarily an objective of monetary policy, not fiscal policy. Central banks typically focus on price stability as a key goal.
• Option B is correct. Fiscal policy involves the use of government spending and taxation to influence various economic factors, including aggregate demand, which in turn affects overall economic activity.
• Option C is incorrect because exchange rate targeting is generally a function of monetary policy, especially in developing economies that may prioritize exchange rate stability over domestic inflation targets.

This question aligns with the CFA curriculum's focus on understanding the roles and objectives of fiscal policy, including its impact on economic activity and the debate surrounding national debt relative to GDP.