A Principal Is ________ If a Third Party Knows or Has

question 45

Multiple Choice

A principal is ________ if a third party knows or has a reason to know that the agent is acting for a principal and the principal's identity.

• A)formalized
• B)nonexistent
• C)disclosed
• D)undisclosed

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Price Level

The central value of current prices for each good and service in the economy.

Value of Money

The purchasing power of money, which varies with inflation and economic conditions, indicating how much goods and services money can buy.

Keynesian Economics

An economic theory suggesting that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.