Question

President Taft’s use of Dollar Diplomacy in Nicaragua and China showed that American foreign policy

Answer 1

President Taft’s use of Dollar Diplomacy in Nicaragua and China showed that American foreign policy could be "bought," since this meant that foreign powers could be swayed through secured financial loans by the US. 

Answer 2

President Taft's use of "Dollar Diplomacy" in Nicaragua and China showed that American foreign policy was mainly a means of promoting the United States' commercial interest and economic power abroad. Through the "Dollar Diplomacy", policy loans were guaranteed to strategically important foreign countries such as Nicaragua and China.