Which of the Following Statements Is True About Contract Laws

question 20

Multiple Choice

Which of the following statements is true about contract laws?

• A) Their application is confined to formally written documents.
• B) They must be formal in order to be valid.
• C) They enable private agreements to be legally enforceable.
• D) They are applicable to all business dealings that are against public policy too.
• E) They are invalid in instances that involve implied "promises."

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Definitions:

Aggregate Expenditure Line

A curve or line that depicts the total spending (consumption, investment, government spending, and net exports) in the economy at different levels of income.

Income Level

An individual's or household's economic status determined by the amount of income generated from wages, investments, and other sources.

Income-Expenditure Model

An economic model that represents the equilibrium level of income or output determined by the intersection of aggregate demand and aggregate supply.

Marginal Propensity

The incremental change in spending (consumption or saving) that occurs with a change in disposable income.