Answer:
A. citizens tend to have greater confidence in the economy.
Explanation:
When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.
This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy
Answer:
Say's law in economics is the ability to purchase something depends on the ability to produce and thereby generate income.
Lack of financial resources and corruption
Answer:
correct option is $31,250
Explanation:
given data
home sold gain = $45,500
to find out
gain may Jamie exclude from gross income in year 2
solution
as given November 1 purchase home February 1 sold
so we know here that Maximum exclusion will be
Maximum exclusion = $250,000 × 
Maximum exclusion = $31,250
so here $31,250 may Jamie exclude from her gross income in year 2
correct option is $31,250
Answer:
Left by $400; Left by $300
Explanation:
Given that,
Marginal propensity to consume, MPC = 0.75
Government spending multiplier = 4
(a) If the government decreases its purchases by $100 million, then the magnitude of the shift in aggregate demand curve is calculated by multiplying the change in government spending to the government spending multiplier.
Aggregate demand curve shift left by
= Change in government spending × Government spending multiplier
= $100 × 4
= $400 million
(b) If the government increases income taxes by $100 million, then the magnitude of the shift in aggregate demand curve is calculated by multiplying the change in taxes to the tax multiplier.
Tax multiplier:
= MPC ÷ (1 - MPC)
= 0.75 ÷ (1 - 0.75)
= 0.75 ÷ 0.25
= 3
Aggregate demand curve shift left by
= Change in taxes × Tax multiplier
= $100 × 3
= $300 million
