🎓 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.

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