Which best explains how President Reagan's foreign policy affected the US economy?

A) The United States reduced military spending as peace talks became more important.

B) The United States built up its weapons' stockpile, which increased defense spending.

C) The United States suffered because of aggressive military action against the Soviet Union.

D) The United States spent more on domestic programs in an effort to look peaceful and secure.

The correct answer is D. During Reagan's administration, the United States spent more on domestic programs in an effort to look peaceful and secure.

But that domestic policy of the Reagan administration was translated by a sharp rise in interest rates in the United States and the dollar was re-evaluated by 50%. This policy generated an explosion of the debt of Latin American countries, which generally use the dollar to repay the sums owed. In France, President François Mitterrand also lamented this policy: "The United States makes us pay for their unemployment and We are the ones who allow Reagan to continue with a policy that crushes us."

D the united states spend more on domestic programs