Option B, The market for factors of production connects household spending to goods produced by firms, is correct.
Explanation:
Option B is true because, in the circular flow diagram, three main players are households, government, and firms. Where households and firms are connected in two ways. First, the household provides labor to the firms and get income against the provided labor. Secondly, this income is spent by households on the goods and services produced by the firms.
B. The growing threat of the former Soviet Union and world communism.
Explanation:
The U.S. signed the many treaties in order to ensure peace. There was an increasing threat of the soviet union and there was a lot of tension between the two nations, a lot of it due to communism. Those treaties didn't work for long because just 2 years later, the cold war broke out.
