The correct answers are A) The federal reserve increased interest rates, which stopped stagflation, and D) The economy recovered, but the national debt grew.
The events that occurred during the Reagan administration and signaled the changing role of government during that time were: "The federal reserve increased interest rates, which stopped stagflation." And "The economy recovered, but the national debt grew."
What US President Ronald Reagan believed about the economy as the basis for his economic program commonly known as "Reaganomics" was that the economy would improve if Americans had more money to spend.
Reaganomics was the term that identified the economic policies of President Ronald Reagan in 1981. In simple terms, it consisted of making cuts and reductions in four important areas of the economy of the United States: reduce the growth of government spending; cut income taxes and capital gain taxes; cut the expansion of the supply of money and diminish the regulation of business.
President Reagan's tenure was from 1981 to 1989 and was the 40th President of the U.S.
