A Promise to Pay a Debt Must Be in Writing

question 33

Multiple Choice

A promise to pay a debt must be in writing if:

• A) the debt is for more than $500.
• B) the debt is now due and payable.
• C) the promise is to pay the debt of another.
• D) the debt owed is the promisor's.

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Definitions:

Loanable Funds Theory

An economic theory that suggests the market interest rate and the quantity of loanable funds are determined by the demand and supply of credit.

Interest Rates

The cost of borrowing money or the return on investments, usually expressed as a percentage.

Present Consumption

refers to the amount of goods and services consumed by individuals or households at the current time, as opposed to saving for future use.

Loanable Funds Curve

A graphical representation of the market for loanable funds, showing the relationship between the real interest rate and the quantity of loanable funds supplied and demanded.