One way the government solves problems is by:

The correct answer is B. Creating public policy.

Explanation: Governments address societal issues and problems through public policy, which includes laws, regulations, and initiatives aimed at promoting the welfare of citizens and managing resources. While making new laws (A) and expanding regulations (D) are part of this process, public policy encompasses a broader range of strategies to address various social and economic challenges. Financing a military (C) is more about national defense than solving societal issues directly.