What reagan policy resulted in an increase in the federal budget deficit? a. supply-side economics b. deregulation c. increased defense spending d. increased spending on social programs

The correct answer here is the option C.

Ronald Reagan implemented his famous Reaganomics economic plan which included policies to reduce the growth of government spending, capital gains tax, federal income tax, government regulation among other things. But he did spend a lot on the military and increased the defense spending. 

The fact that farmers were paid for destroying crops.