A Contract Is A(n) ________ Agreement for Which the _______

question 52

Multiple Choice

A contract is a(n) ________ agreement for which the _______.:

• A) promissory, parties make mutual promises.
• B) multi-party, law gives a remedy.
• C) obligation, obligor promises to pay the obligee.
• D) legally binding, law gives a remedy.

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Definitions:

Investment

The allocation of resources, such as capital, time, or assets, to a project or asset with the expectation of generating future profits.

Households' Decision

The choices made by households regarding consumption, savings, and labor supply based on income, preferences, and economic conditions.

Save Less

Refers to a decrease in the amount of income that individuals or entities set aside as savings.

Demand-for-loanable-funds

The desire for borrowing money from available financial resources, influenced by the interest rate.