Multiple choice

Serious concern has been expressed by analysts over the declining budget outlays for US defense, especially in view of the continuing threat perception to its security. During the present President's tenure, the budget has showed an increase of 5% each year in contrast with the previous regime, during which the annual rate of budget increase was 9%. Evidently, the slim budgets have played havoc with American plans of re-emerging as a major global military power. With a drop in defense spending, a lot of projects still remain pending.

Which of the following, if true, could seriously weaken the above premises?

  1. The rate of inflation during the present regime has decreased. At present it is 3% while earlier it was 11%.

  2. The salaries of defense personnel have stayed almost same over the years.

  3. The present regime has seen some increase in defense spending every year.

  4. The present government has introduced several economy measures for the Armed Forces, including a cut in arms requirements.

  5. Reinforcement of the defense forces' role in American polity is on the top of the agenda for the present government.

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A Correct answer
Explanation

Inflation has gone down by 8%, while spending has decreased by only 4%. Hence, there is a net increase in the rate of growth of spending. Effective rate of growth in defense outlay is up by 4%. The argument gives a go-bye to inflation rate, another significant consideration, which will decide the effective increase.

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