When Are Promises Based on Past Consideration Enforceable

question 5

Multiple Choice

When are promises based on past consideration enforceable?

• A)When a sale of goods is involved
• B)Always
• C)When an illusory promise is made
• D)When enforcement is necessary to avoid injustice
• E)Never

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Definitions:

Import Quotas

Restrictions set by a government on the quantity or value of certain goods that can be imported into a country, often to protect domestic industries.

Exchange Rate

The price at which one currency can be exchanged for another in the foreign exchange market.

Open-Economy Macroeconomic Model

An analytical framework considering the interactions between the domestic economy and the rest of the world, including trade, capital flows, and exchange rates.

Budget Deficit

A situation where a government's expenditures exceed its revenues, leading to a shortfall that must be financed through borrowing.