A. The necessity of providing money to keep crucial industries from going bankrupt will discourage the government from reducing its military budget.
This goes beyond the scope of the argument. The passage does not say the government will be discouraged from reducing its military budget; it focuses on the consequences of doing so.
Eliminate.
B. If the government decreases its military budget, it will eventually be forced to increase its military budget to its former level.
This is not supported by the passage. The argument suggests a shift in spending (toward research and development), not a reversal back to military spending.
Eliminate.
C. The industries that receive research and development money will be successful in their efforts to convert to peacetime manufacturing.
This is speculative and not stated in the passage. The argument focuses on the need for funding, not the outcome of that funding.
Eliminate.
D. In the event of war, this country would be unprepared for military conflict.
This is irrelevant. The passage does not discuss preparedness for war.
Eliminate.
E. Reducing military spending to save money will result in some increases in other types of spending.
This aligns with the argument. The conclusion is that reducing military spending will lead to increased spending on research and development to support crucial industries.
Correct Answer: E