4.
What Reagan policy resulted in an increase in the federal budget deficit?
*supply-side economics
deregulation
increased defense spending
increased spending on social programs
Thank You.
I agree.
Ms.Sue is wrong no disrespect but it's C
The Reagan policy that resulted in an increase in the federal budget deficit was increased defense spending.
To arrive at this answer, let's understand the other options first:
1. Supply-side economics: This policy, commonly known as Reaganomics, focused on reducing taxes and regulations to stimulate economic growth. While it did contribute to economic growth, it also led to a decrease in government revenue, which increased the budget deficit. However, this option is not the specific policy that led to the increase in the deficit.
2. Deregulation: This policy aimed to reduce government regulations on various industries, which was intended to promote economic growth. While it had some impact on the budget deficit indirectly, it is not the main policy responsible for the increase.
3. Increased spending on social programs: This option refers to the expansion of government spending on social programs, which generally result in an increase in the budget deficit. However, during Reagan's presidency, he actually reduced spending on social programs, so this is not the correct answer.
Hence, the correct answer is increased defense spending. Reagan pursued a policy of strengthening the military, which led to a significant increase in defense spending. This spending, combined with the tax cuts implemented through Reaganomics, ultimately contributed to the growth of the federal budget deficit during his presidency.