🎓 GED Exam Prep

When the government decides to increase its spending on infrastructure projects (like roads and bridges) to stimulate the economy, it is primarily using which type of economic policy?

A Monetary policy
B Fiscal policy
C Trade policy
D Regulatory policy

✓ Correct Answer: Option B

Fiscal policy involves the government's use of spending and taxation to influence the economy. Increased government spending on infrastructure is a direct application of fiscal policy to stimulate economic activity.

💡 Why is B) the correct answer?

The correct answer to the question "When the government decides to increase its spending on infrastructure projects (like roads and bridges) to stimulate the economy, it is primarily using which type of economic policy?" is Option B: Fiscal policy.

The other options — A) Monetary policy, C) Trade policy, D) Regulatory policy — are incorrect for this GED Exam Prep question. As explained above: Fiscal policy involves the government's use of spending and taxation to influence the economy. Increased government spending on infrastructure is a direct application of fiscal policy to stimulate ec…

📚 About This GED Exam Prep Practice Question

This 3-level GED Exam Prep question from the Social Studies topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GED Exam Prep practice test or use flashcards for spaced repetition review.

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