A Decline in the Output Gap Causes the Demand for Real

question 28

Multiple Choice

A decline in the output gap causes the demand for real balances

• A) to rise and the interest rate to fall.
• B) to fall and the interest rate to rise.
• C) and the interest rate to fall.
• D) and the interest rate to rise.

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Definitions:

Oral Contract

An agreement between parties spoken out loud and not written down, yet it is legally binding.

Written Contract

A legally binding agreement between parties that is set down in writing and signed by the parties involved.

Tentative Contract

A preliminary agreement that outlines the terms and conditions of a contract to be finalized later.

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An enforceable contract is a legally valid agreement between two or more parties, which can be upheld and compelled by the courts.