A Contractual Agreement Always Involves Either a Promise Exchanged for a Promise

question 2

True/False

A contractual agreement always involves either a promise exchanged for a promise or a promise exchanged for a completed act or forbearance to act.

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Definitions:

Capacity Utilization Rate

A measure of how fully an industry or economy is using its total productive capacity.

Interest Rate

The portion of the loan that applies interest costs to the borrower, generally formulated as an annual percentage of the still outstanding loan amount.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Gross Investment

The total amount spent on new capital assets before accounting for depreciation, reflecting an economy's investment levels.