Do Managers Respond to Increases in Transparency by Other Firms

question 1

Multiple Choice

Do managers respond to increases in transparency by other firms and/or increases in the demands for transparency from investors?

• A)No,managers do not respond to either.
• B)Yes,managers respond positively to both.
• C)Managers respond only to demands from investors but not to increases in the transparency of other firms.
• D)Managers respond only to increases in the transparency of other firms but not to demands from investors.

---

Definitions:

Unemployment

The situation when individuals who are capable of working and willing to work are unable to find employment.

Long-run Phillips Curve

An economic concept stating that in the long run, there is no trade-off between inflation and unemployment; the curve is vertical at the natural rate of unemployment.

Inflation

How rapidly the across-the-board prices of goods and services increase, impairing fiscal buying ability.

Unemployment

Unemployment occurs when individuals who are capable of working and are looking for a job are unable to find employment. It is a key economic indicator.