Answer:
A) 20 billion
Explanation:
Y = AD
= C + I + G
C = A + cY
A - Autonomous Consumption
c - MPC
Y = A + cY + I + G
Y - cY = A + I + G
Y(1 - c) = A + I + G
Y = (A + I + G)*1/(1 - c)
Taking derivative with respect to goverement purchase
dY/dG = 1/(1 - c)
( here d is represting del we are representing partial derivative.)
1/(1 - c) = Multiplier
dY = Multiplier*dG
= 5*15
= 75
75 = horizontal distance between AD1 & AD2
55 = horizontal distance between AD1 & AD3
Extent of crowding out = 75 - 55 = 20
Therefore, the Extent of crowding out is 20 billion.
Answer:
B. Cash in Bank account (debit) Interest on Loan account credit)
Answer:
The statement is false
Explanation:
Non- essential expense is the expense which is spent on the extra things, which means it is not essential to meet the needs. Whereas the essential expense are those expenses which are spend on consuming the things required for living. For example food, cloth.
So, both the expenses are those expense which are necessary for an individual or person and therefore, cannot be reduced in order to produce the more savings.
Answer:
certificate of deposit
Explanation:
A certificate of deposit (CD) is a financial instrument sold by banks
The bank gives this CD to Gwen. She cannot withdraw the cash until July 1, 2023
The certificate of deposit are risk-free investment. The difference with savings account is that a certificate of deposit has a fixed term and fixed interest rate and it is create with the idea of holding the title until maturity. Not doing so, may inccur in penalties so a portion of the interest will be negate.
As this is a financial instrument, the bank issued a title to the investor to recognize his investment.
Answer:
hope this helps
Explanation:
A black hole is a place in space where gravity pulls so much that even light can not get out.
