When military spending increased in Country X ten years ago, citizens started spending a smaller percentage of their disposable income on luxury items. When military spending recently decreased, spending on luxury items increased back to its initial level. The perceived threat of war, therefore, persuades consumers to spend less on luxuries than they otherwise would.
The argument above depends on which of the following assumptions?
A. The perceived threat of war has increased over the years.
B. Most citizens supported the decrease in military spending.
C. Citizen's perceptions of the threat of war depend on the amount of military spending by Country X.
D. The people who spent the most money on luxury items when military spending was low were the ones who supported low levels of military spending.
E. There are fewer luxury goods available when military spending increases.