How did President Ronald Reagan's administration support Contra rebels in Nicaragua after Congress cut funding for military aid? By implementing a sin tax on luxury items By confiscating funds seized in drug raids By collecting tariffs on oil imports from Saudi Arabia By secretly selling weapons to Iran in order to raise funds

## Step 1<br />The question is asking about the method used by President Ronald Reagan's administration to support Contra rebels in Nicaragua after Congress cut funding for military aid. The Contras were a group of rebel forces in Nicaragua that were opposed to the Sandinista government, which was a socialist regime.<br /><br />## Step 2<br />The options provided are:<br />- Implementing a sin tax on luxury items<br />- Confiscating funds seized in drug raids<br />- Collecting tariffs on oil imports from Saudi Arabia<br />- Secretly selling weapons to Iran in order to raise funds<br /><br />## Step 3<br />The correct answer is "By secretly selling weapons to Iran in order to raise funds". This is because the Reagan administration used the proceeds from the secret sale of weapons to Iran to fund the Contras. This operation was known as the Iran-Contra Affair.