What did Reagan believe the government should do to improve the economy?

increase large government agencies

invest in social programs

reduce the national debt

become smaller and more efficient

Option D. In order to improve the economy, President Reagan believed the government should become smaller and more efficient.

Explanation:

When President Reagan took power over the Presidency of the United States, in 1981, the country was submerged in a stagflation. To combat it, the ex-President aggressively cut a series of taxes, like income and corporate, and started to deregulate the market in order to combat the high inflation rates. He also believed in a reduced government role and government spending, which ultimately he failed to conduct successfully, as he had to increase the defense spending for the Cold War.

The correct answer is D, "become smaller and more efficient."