Conclusion: The perceived threat of nuclear catastrophe decreases tendency of saving and increases spending.
1) the perceived threat of nuclear catastrophe has increased over the years-- Not an assumption and conclusion is not based upon this fact.
2) most people supported the development of nuclear arms-- Not an assumption and conclusion is not based upon this fact.
3) people’s perception of the threat of nuclear catastrophe depends on the amount of nuclear-arms testing being done-- Thsi bridges the gap between people's perception of neuclear threat (and hence their spending) and amount of nuclear testing.
4) the people who saved the most money when nuclear-arms testing was limited were the ones who supported such limitations-- Author dont have to assume this to arrive at his conclusion.
5) there are more consumer goods available when nuclear-arms testing increases -- Not an assumption and conclusion is not based upon this fact.Hence choice(C) is the answer.
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