As Carl Becker pointed out during the rise of European fascism after World War I, for democracy to prosper, it needs “a certain measure of economic security” (Becker 1932). How should the citation in this sentence be corrected to adhere to MLA format?

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A citation is a quotation in reference to a book. It is usually reflected when someone uses the words used and published by other writer/author. In this case, the citation should ba placed in the position 3 which "for democracy to prosper, it needs "a certain measure of economic security".
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By replacing the year with the page number

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