Answer to Question #285010 in Macroeconomics for kika

Question

5. 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?

Answer 1

White House officials exuding more confidence than they actually feel is a great approach because it encourages and guarantees enhanced investment in infrastructure. Even so, a decrease in the possible future investment funds caused by government confidence will also lead to business failures or mistakes throughout the investment process.