A Contract Between E-Debits, Inc

question 15

Multiple Choice

A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is

• A) enforceable because the parties are protected from liability.
• B) enforceable because the parties consented to it.
• C) enforceable if the parties have equal bargaining power.
• D) not enforceable.

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Definitions:

Expected Inflation Rate

The anticipated rate at which the general level of prices for goods and services will rise over a specific period.

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the rate at which prices increase.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to assess inflation.

Base Year

A reference year against which economic growth or inflation is measured, often using indices in real GDP calculations or price levels.