The graph explains about US defense spending declined after World War II but increased as the Cold War heated up.
What happened from 1946 to 1968?
The year 1946 was the official declaration date for the end of the war and there starts the challenges to upcome the depression period. The economy was totally backend and to bring it up it world require much strength, capital, support of the citizens, and also the spending of the government.
The spending was at the peak when the war just ended and then declined as the economy could produce for the livelihood of the farmers. Then gradually it slowed and in the year 1968, it was at the peak as the imports were more than the exports.
Therefore, the correct option is the third sentence.
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