The correct answers are C) for the first question and B) for the second one.
The deficit rose during Reagan's term as President because he increased defense spending. And President Reagan lost popularity and failed political momentum because the House of Representatives remained under the control of the Democrats.
During the Ronald Reagan presidency, the deficit rose because the White House spend a lot of money in the defense program. Indeed, he created the "Star Wars" defense plan, that was a kind of space defense against possible missiles from Russia. That cost millions of dollars. And regarding the loss of Reagan's popularity and political momentum, a big part was due to the Democratic majority in the Huse of Representatives and the consequent opposition he faced to his plans.