Answer:
The answer is 750
Explanation:
When government increases its spending, this increase in spending leads to increases in income for households which cumulatively increase the national income, this effect is known as multiplier effect.
Government has increased its spending by 250 while multiplier effect is 3.
Therefore, output will increase by 750(250 x 3)
Answer:
Stocks and Bonds
Yes. It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."
Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.
Explanation:
Every rational investor would prefer to reduce her risk exposure instead of increasing it. Every investor is also aware that investments with higher risks attract higher returns. However, determining the certainty of the returns is difficult.
I would consider demographics, education level, and methods of communication
