Final answer:
George III's economic policies in Britain were influenced by mercantilism, centered around the Navigation Acts, and included higher import duties and strict currency regulations that placed financial strains on the American colonies.
Step-by-step explanation:
When George III ascended to the throne in 1760, Britain was governed under the economic theory of mercantilism. Under mercantilism, Britain sought to strengthen its empire by ensuring that trade benefited the mother country through a series of Navigation Acts. These acts required the colonies to conduct trade within the British Empire and largely prohibited the production of goods that competed directly with British manufactures. New fiscal policies were implemented by figures such as Prime Minister George Grenville, who sought to control spending and ensure the American colonists contributed to the payment of Britain's debts following expensive military conflicts.
During George III's reign, the greater tax burden fell on the lower classes through increased import duties, causing higher prices on goods such as sugar and tobacco. This imposition led to tighter financial conditions in the colonies, especially with the Currency Act of 1764, which demanded that colonists pay British merchants in gold and silver, restricting the use of colonial paper money.
This blending of robust economic control with political oversight set the foundations for the eventual discontent that sparked the American Revolution.