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.

5 answers

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.