It is not an exaggeration to say that the US underwent a "transportation revolution" during this time. Before paved roads occurred, it cost practically the same amount to ship something to Europe as it did to send it on land in the US. Paved roads of course increased economic output but making the transfer of supplies much easier.
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They come to a diplomatic agreement by compromise and if they cannot come to an agreement there is war
Process of elimination - everything but 1 and 3 does not sound like a bad thing. But the answer is yellow stars.
Because the Ku Klux Klan is an organization that doesn't tolerate black people and kills them for a living. And because of that it would be called the first homegrown terrorist organization.