If There Is a Novation, the Original Promisor Remains Liable

question 20

True/False

If there is a novation, the original promisor remains liable to the promisee if the latter fails to perform.

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Definitions:

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in an economy are willing and able to produce at a given overall price level in a specific time period.

National Debt

The total amount of money that a country's government has borrowed by issuing securities, typically through bonds.

Fiscal Deficit

The financial shortfall when a government's expenditures exceed its revenue.

International Monetary Fund

An international organization created for the purpose of promoting global monetary and exchange stability, facilitating the expansion and balanced growth of international trade, and assisting in the establishment of a multilateral system of payments for current transactions.