C because I
Had this question
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:
1)
cost of making (14000*22) = 308000
cost of buying (14000*(18+6)) = 336000
Difference cost = 28000
2)
No, Since, there is not other use of fixed cost, therefore, fixed cost will be a part of cost of buying.
3-a)
cost of making (14000*22) = 308000
cost of buying (14000*18) = 252000
3-b)
Yes, Since, there is other use of fixed cost, therefore, fixed cost will not be a part of cost of buying.
<u>Full question:</u>
On June 15, Harper purchased equipment for $100,000 from Imperial Corp. for use in its manufacturing process. Harper paid for the equipment with funds borrowed from Eastern Bank. Harper gave Eastern a security agreement and financing statement covering Harper’s existing and after-acquired equipment. On June 21, Harper was petitioned involuntarily into bankruptcy under Chapter 7 of the Federal Bankruptcy Code. A bankruptcy trustee was appointed. On June 23, Eastern filed the financing statement. Which of the parties will have a superior security interest in the equipment?
A. The trustee in bankruptcy, because the filing of the financing statement after the commencement of the bankruptcy case would be deemed a preferential transfer.
B. The trustee in bankruptcy, because the trustee became a lien creditor before Eastern perfected its security interest.
C. Eastern, because it had a perfected purchase money security interest without having to file a financing statement.
D. Eastern, because it perfected its security interest within the permissible time limits.
<u>Answer:</u>
Eastern parties will have a superior security interest in the equipment because it perfected its security interest within the permissible time limits.
<u>Explanation:</u>
Eastern has a higher security interest because Eastern amended its security interest inside the allowable time deadlines. A perfected security interest in any security interest in an asset that cannot be demanded by any other party.
Below the Uniform Commercial Code (U.C.C.), to perfect a security interest, a lender has 10 days from the date of the sale of material to perfect the security interest by filing a financing statement. Possessing registered in the 10-day limit, Eastern has a strong perfected security interest in the material and after-acquired things even though the bankruptcy was recorded two days ahead.
