A Comfort or No-Action Letter

question 32

Multiple Choice

A comfort or no-action letter

• A)is a document,written by a government official,assuring two or more businesses that their proposed merger is lawful.
• B)is a formal document written by one level of government to another that provides an assurance that the constitutional validity of a piece of legislation will not be questioned on the grounds of ultra vires.
• C)is a document,usually illegal or unenforceable,that is written by a consumer and that assures a retailer or manufacturer that a product that caused an injury or loss will not be the subject of a claim in tort or contract.
• D)is a document that is written by a government official and that assures the parties to a proposed sale of land that the land will not be the subject of environmental litigation.
• E)a letter from a judge saying the company is not guilty of any offence.

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Definitions:

MPC

Marginal Propensity to Consume, the proportion of an increase in income that gets spent on consumption.

Multiplier Effect

The phenomenon where an initial increase in spending leads to a larger increase in income and consumption within the economy.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade balance.

MPC

The Marginal Propensity to Consume, representing the proportion of any additional income that a consumer spends on goods and services, as opposed to saving it.