Len, an Agent for Mind Games LLC, Executes an Unauthorized

question 8

Multiple Choice

Len, an agent for Mind Games LLC, executes an unauthorized contract with NOW Marketing, Inc. The deal is highly advantageous to Mind, and the company ratifies the contract. The contract is

• A) valid.
• B) vicarious.
• C) void.
• D) voidable.

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Definitions:

Classical Dichotomy

The theoretical separation of real and nominal variables in classical economics, implying that economic variables can be distinctively divided into those that are related to quantity and those related to price.

Money Neutrality

The concept that changes in the money supply only affect nominal variables in the economy, such as prices, wages, and exchange rates, but not real variables like employment or real GDP.

Money Supply

The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation within an economy at a specific time.

Real GDP

The total value of all goods and services produced within a country in a specific period, adjusted for inflation, reflecting the actual growth in economic performance.