Question 1: White House officials often exude more confidence than they actually feel about future prospects for the economy. Why might this be a good strategy? Are there any dangers inherent in it?
Question 2- Suppose everyone expects investment to rise sharply in three months. How would this expectation be likely to affect bond prices?
Question 3-. Suppose that every increase of $1 in real GDP automatically stimulates $0.20 in additional investment spending. How would this affect the multiplier?
Please answer these 3 questions in a 200 words or more.