A Major Consequence of the Sarbanes-Oxley Act Has Been the

question 29

Multiple Choice

A major consequence of the Sarbanes-Oxley Act has been the

• A) Political fallout in the Congress
• B) Outsourcing of jobs in lower wage countries
• C) Super growth in accounting firms in the U.S.
• D) Restructuring of the governance structure of American corporations

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Definitions:

Rational Expectations

A theory in economics suggesting that individuals make decisions based on their rational outlook, available information, and past experiences.

Adaptive Expectations

A theory in economics that expectations of future events are constructed based on past events and that agents adjust slower to new information.

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation as a primary method for managing the economy and combating inflation.

Money Supply

The comprehensive sum of money resources in an economy, encompassing cash, coins, and deposits in checking and savings accounts, at a specific moment.