28-in 2008, in order to encourage people to spend more money and stimulate the economy, congress passed the american reinvestment and recovery act, authorizing the government to spend $831 billion on education, infrastructure (such as roads and bridges), healthcare, and a host of other initiatives and projects, hoping to put people back to work. this is an example of the government exercising policies. a. monetary b. deflationary c. international trade d. fiscal e. budgetary

D Fiscal Policies

Fiscal policies refer the adjustments made by the government to tax policies and government spending in order influence the level of economic activity in a country.

The main aim of a fiscal policy is to stabilize the economy while trying to avoid the impact of excessive growth and recessions.

In the question, the government passed a bill that authorized spending on infrastructure, healthcare etc. This was done in order to increase employment and ultimately increase aggregate demand. Hence this is a fiscal policy.