Question

What Reagan policy resulted in an increase in the federal budget deficit?

A. supply-side economics
B. deregulation
C. increased defense spending
D. increased spending on social programs

Answer 1

The Reagan policy resulted in an increase in the federal budget deficit in C. increased defense spending. They need to spend more of their defense system in order to fight against countries and in war so that they would protect their country from being conquered by others.

Answer 2

The correct answer here is the option C.

Ronald Reagan implemented his famous Reaganomics economic plan which included policies to reduce the growth of government spending, capital gains tax, federal income tax, government regulation among other things. But he did spend a lot on the military and increased the defense spending.