MrFrank,a Foreman Supervising Some 43 Employees,was Asked by His Secretary

question 71

Multiple Choice

Mr.Frank,a foreman supervising some 43 employees,was asked by his secretary to sign a form requesting additional supplies needed on the factory floor.He was not careless when he examined the form,but his secretary had cleverly arranged the signature line so that instead of signing a request for supplies he signed a cheque payable to his secretary.What plea,if any,would be used to defend against her action on the cheque?

• A) mistake
• B) illegality of object
• C) rescission
• D) non est factum
• E) rectification

Explain the difference between a shift of the aggregate-demand curve and a movement along a given aggregate-demand curve.

Identify government policies that can shift aggregate demand and understand the role of government spending and taxation.

Describe what composes aggregate demand in an economy.

Discuss the concept of money as a veil in classical economics and its implications for economic analysis.

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Definitions:

Present Value

The current worth of a future sum of money or cash flows given a specified rate of return.

Dollar Received

Indicates the actual amount of money received, taking into account all transactions.

Potential Profit Rate

refers to the expected return on investment or the rate at which a particular activity or venture might yield profit under optimal conditions.

Usury Laws

Regulations that impose caps on the interest rates that can be charged on loans, designed to protect consumers from excessive rates.