Which of the Following Are Possible Consequences When the Government

question 41

Multiple Choice

Which of the following are possible consequences when the government reduces government
Purchases to address an inflationary gap?
I. increase in the price of bonds
II. increase in net exports
III. decrease in the federal budget deficit (or increase the surplus)
IV. decrease in the exchange rate

• A) I, II, III, and IV
• B) I and III only
• C) I, III, and IV only
• D) II, III, and IV only

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Definitions:

Contract of Adhesion

A standard-form contract prepared by one party to be signed by another party in a position of weaker bargaining power, often not negotiable.

Fraudulent Misrepresentation

The act of intentionally providing false information with the aim of deceiving another party, often to induce them into a contract.

Mutual Mistake

A misunderstanding shared by both parties involved in a contract, leading to a misalignment in agreement terms.

Blackmails

The act of demanding payment or another benefit from someone in return for not revealing compromising or damaging information about them.