During the Reagan years, what happened to the overall course of the budget deficit?

A. It rose.
B. It fell.
C. It increased by about $210 billion
D. It increased, then fell back to its original level.

I chose C.

What was the major cause of deficit increases during the Reagan years?
A. The cost of the Persian Gulf War
B. The Strategic Defense Initiative
C. Increased defense spending and tax cuts under Reagan
D. Bush's Pledge not to raise taxes

I chose B.

I think you're right about the first question.

I think you're wrong on the second.

Ok my next guess was going to be C, because in my book it says how in 1981, Reagan he was cutting taxes, and in 1985, the nation was spending half a million dollars every minute on defense and these expenditures contributed to the growing budget deficits. But I wasn't sure about the tax cutting or not that's why I chose B at first.

I agree with C.

Thank you!

You're welcome.

To determine the answer to the first question about the overall course of the budget deficit during the Reagan years, we need to understand the historical context. The Reagan years refer to the presidency of Ronald Reagan, which spanned from 1981 to 1989.

To find the answer, one way is to examine the historical data on the budget deficit during Reagan's presidency. This can be done by researching government financial reports or consulting economic databases. By analyzing the data, we can determine the trend of the budget deficit over those years.

The budget deficit is the difference between government spending and government revenue in a given year. If the government spends more money than it collects in revenue, it results in a budget deficit. On the other hand, if government revenue exceeds spending, there is a budget surplus.

Based on the data, the correct answer is A. The budget deficit rose during the Reagan years. It is important to note that the budget deficit did increase, but the exact figure of $210 billion mentioned in option C may not be accurate.

Moving on to the second question about the major cause of deficit increases during the Reagan years, we again need to examine the historical context and the policies implemented during that time.

The Persian Gulf War, mentioned in option A, did not occur during Reagan's presidency but rather in the early 1990s under President George H.W. Bush. Therefore, it cannot be the major cause of deficit increases during the Reagan years.

The Strategic Defense Initiative (SDI), mentioned in option B, was a proposed missile defense system during Reagan's presidency. While it was an ambitious and costly project, it alone cannot be considered the major cause of deficit increases during that time.

Option C correctly identifies the major cause of deficit increases during the Reagan years. Reagan implemented policies of increased defense spending and tax cuts, which contributed to the rising budget deficit. The combination of increased military expenditures and reduced tax revenues led to a larger deficit.

Option D, Bush's Pledge not to raise taxes, refers to a policy enacted by George H.W. Bush, who was Reagan's Vice President and then succeeded him as President. This policy was implemented after Reagan's presidency and is not directly related to deficit increases during his time in office.

Therefore, the correct answer to the second question is C. Increased defense spending and tax cuts under Reagan were the major cause of deficit increases during the Reagan years.