Question
I need help with these three homework assignment questions. PLEASE be as elaborate as much as possible in your answers and properly number them. I
I need help with these three homework assignment questions. PLEASE be as elaborate as much as possible in your answers and properly number them. I need original answers, not copy and paste ones. Thank you very much.
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Questions:
1. Suppose everyone expects investment to rise sharply in three months. How would this expectation be likely to affect bond prices?
2. Suppose that every increase of $1 in real GDP automatically stimulates $0.20 in additional investment spending. How would this affect the multiplier?
3. Use the model of aggregate demand and aggregate supply to evaluate the argument that an increase in investment would raise the standard of living.
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