I would assume inside of an office building with cubicles.
If the multiplier equals 2 and the AD shortfall is $6 million, the desired fiscal stimulus is $3 million.
<h3>What is the shortfall?</h3>
The term shortfall has referred to the deficiency of something in the market. When the availability of goods is not adequate and suppliers fail to provide them. This situation is considered as shortfall.
To calculate the desired fiscal stimulus
desired fiscal stimulus= AD shortfall/ Multiplier
=$6 million/ 2
= $3 million
Therefore, the desired fiscal stimulus is $3 million.
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Answer:
Direct
Explanation:
There are different types of conversion systems. Example includes the direct conversion and parallel conversion.
In this conversion system, users stops using the old system one day and starts using the next system the next.
Its requires fewer resources and is simple if nothing goes wrong. Risk involved mostly if the hardware and software are old or at a cutting edge.
Direct conversion is said to be an abrupt change where the the old system is simply unplugged and the new system is turned on. It does not allow users with any choice but to work with the new system. It is said to be risky and least cost.
Question Completion with Options:
A. greater investment.
B. All of the above are correct.
C. higher public saving.
D. a higher interest rate.
Answer:
Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to
D. a higher interest rate.
Explanation:
When the government is operating a budget deficit, it means that its spendings are more than its tax revenues. It then resorts to issuing treasury bills and bonds to finance the deficit. This naturally reduces the price of bonds and raises interest rates. With rising interest rates, firms and individuals reduce their spending. The cost of borrowing becomes more expensive than before.
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