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Which of the following statements can be inferred from the graph?

I. The NATO countries have higher incomes than the Warsaw Pact countries.
II. Worldwide military expenditures have increased each year between 1964 and 1971.
III. In 1972 worldwide military expenditures were more than 230 billion dollars.

(A) I only
(B) II only
(C) I and II only
(D) II and III only
(E) I, II, and III

Looking at the graph, we cannot determine whether NATO countries have higher incomes than Warsaw Pact countries, since no information is provided regarding incomes. We also cannot determine any information regarding 1972, since it is not included on the graph.

The only true statement is that worldwide military expenditures have increased each year between 1964 and 1971.

Answer: B
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