Barbara and Johann Are Parties to a Contract

question 38

Multiple Choice

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

• A) ​the existence of a previous, valid obligation.
• B) ​consideration greater than $5,000.
• C) ​performance of the original contract by all of the parties.
• D) ​an accord and satisfaction.

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Definitions:

Aggregate Demand Curve

A graphical representation showing the overall demand for goods and services in an economy at various price levels.

Discretionary Fiscal Policy

Fiscal policy based on judgment by policymakers rather than set by predetermined rules, aiming to influence demand through changing government spending and taxation.

Clinton

A reference to Bill Clinton, the 42nd president of the United States, serving from 1993 to 2001, known for economic policies leading to budget surpluses and welfare reform.

Stimulus Package

A package of economic measures put together by a government to stimulate a struggling economy, typically including tax cuts, spending increases, and monetary policy adjustments.