Which statement describes the effects of Reaganomics?

• A. Without taxes the government could pay for the services it provided.
• B. Increased national spending to the point where the national debt almost reached $1 trillion.
• C. 1987-Congress rejected Reagan's budget.
• D. Stock market crashed in 1987.

Answer: (B)

Reaganomics aimed to boost growth through tax cuts while expanding government spending, especially on defense. This combination produced large budget deficits, so the national debt rose significantly. Describing the policy as increasing spending to the point the debt neared $1 trillion captures the big-debt consequence of those fiscal choices. The other options don’t fit: the plan didn’t advocate eliminating taxes altogether, Congress did not simply reject Reagan’s budget in that year, and the 1987 stock market crash was a market event rather than a direct effect of Reaganomics.