Consider the diagram of the water cycle. Assume that deforestation has taken place. Explain how this affects the movement of water through this model?

Transpiration would be affected. Transpiration is the process of water movement through a plant and its evaporation from aerial parts, such as leaves, stems and flowers. So basically evaporation from plants.

As trees and plants are responsible for extracting groundwater from the soil and returning it the atmosphere, deforestation results in the water not being able to be released back into the atmosphere, affecting the balance of the water cycle.