Which of the Following Was a Reason for the Decline

question 29

Multiple Choice

Which of the following was a reason for the decline in inflation during the first years of Reagan's presidency?

• A) A decline in the value of the dollar on foreign exchange markets
• B) The Federal Reserve's decision to raise interest rates on bank loans to an unprecedented level
• C) The end of federal health and safety regulations on businesses
• D) A substantial decline in the balance-of-trade deficit

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Definitions:

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.

Legal Action

A formal proceeding by which a party seeks to enforce or protect a legal right through a court of law.

Mutual Mistake

A legal concept where both parties involved in a contract have a shared misunderstanding about a critical fact of the contract.

Unilateral Mistake

Occurs when one party to a contract is mistaken about a basic assumption on which they made the contract, and the other party either knows or has reason to know of the mistake.