Consumer Spending Will Likely Fall If

question 106

Multiple Choice

Consumer spending will likely fall if:

• A) government transfers rise.
• B) the government raises tax rates.
• C) the government lowers tax rates.
• D) government transfers rise or tax rates are lowered.

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Definitions:

Adhesion Conscionability

A legal concept referring to the fairness of contract terms in a standard-form agreement, where one party has significantly more power to dictate the terms.

Exculpatory Clause

A statement in a contract that frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract, generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Age of Majority

The legal age at which an individual is considered capable of entering into contracts and other legal bindings, marking the transition into legal adulthood.

Necessity

A concept in law and ethics that allows for actions under exceptional circumstances, typically for immediate need or survival.