Refer to the Information Provided in Figure 19

question 130

Multiple Choice

Refer to the information provided in Figure 19.1 below to answer the questions that follow. Figure 19.1
-Refer to Figure 19.1. If the economy is open and the government increases spending by 25, the new equilibrium output is

• A) 100.
• B) 118.75.
• C) 125.
• D) 137.50.

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Definitions:

Impossibility of Performance

A legal defense used in contract law where a party claims that fulfilling the obligations of a contract has become objectively impossible due to unforeseen events.

Supervening Events

Events that occur after the formation of a contract which could render the performance impossible or significantly change the nature of the original agreement.

F.O.B. Buffalo

An Incoterm meaning Free On Board Buffalo, indicating that the seller delivers when the goods are loaded on board a vessel at the Buffalo location, with the seller covering transportation to that point but the buyer taking responsibility thereafter.

Tender

An offer of payment or delivery of goods in fulfillment of an obligation or contract.