Question

Which best explains how President Reagan’s foreign policy affected the US economy?
The United States reduced military spending as peace talks became more important.
The United States built up its weapons’ stockpile, which increased defense spending.
The United States suffered because of aggressive military action against the Soviet Union.
The United States spent more on domestic programs in an effort to look peaceful and secure.

Answer 1

The United States built up its weapons’ stockpile, which increased defense spending.

Explanation: Reagan pursued a military buildup (including the Strategic Defense Initiative), increasing defense budgets. That raised government spending on the military and contributed to larger federal deficits while boosting defense-sector production.