The New Deal, implemented during the 1930s in response to the Great Depression, significantly impacted the concept of federal government involvement in the economy and the lives of American citizens. Among the options provided:
1. **It set a precedent for extensive government intervention.**
- This option is correct. The New Deal marked a departure from the traditional limited role of the federal government. It introduced a range of programs and policies aimed at stabilizing the economy, providing relief to those in need, and stimulating recovery.
2. **It led to the complete privatization of all industries.**
- This option is incorrect. The New Deal did not advocate for the complete privatization of industries. Instead, it involved various government interventions and regulations to address economic challenges.
3. **It encouraged state governments to take over federal responsibilities.**
- This option is incorrect. The New Deal focused on federal initiatives rather than transferring responsibilities to state governments. It aimed to address national economic issues through federal programs and policies.
Therefore, the correct option is: **It set a precedent for extensive government intervention.**