A democracy is a form of government ruled by representatives that are elected by the popular vote of the people. The United States is an example of a democracy.
So your answer would be number 2.
Hope this helped. (:
The economy in the United States in the 1920's varied greatly from European countries. After WWl, Europe struggled to rebuild. Europe had taken the brunt of the attacks and went into a deep depression. The United States in contrast boomed. The economy was better than ever before. Since no attacks had happened on American soil, we were able to mass produce consumer goods, etc. People were buying on credit, investing in the stock market, and moving to the city. Life was good in America; not so good in Europe.
West Germany formally joined NATO on May 5, 1955, and the Warsaw Pact was signed less than two weeks later, on May 14. Joining the USSR in the alliance were Albania, Bulgaria, Czechoslovakia, the German Democratic Republic (East Germany), Hungary, Poland and Romania.