Answer: A. is required to draw up a petition listing all assets and liabilities.
Explanation:
Bankruptcy simply refers to the legal whereby an economic entity is unable to repay their outstanding debts. In this case, the individual or business will need to sell its remaining assets in order to pay the liabilities.
Due to the above reason, then the debtor will be required by the government to list all of their assets and the liabilities that it owns and this will be used in determining whether the obligation has been fulfilled or not.
It is a case of an ethical dilemma. These are circumstances in which there is a decision to be made between two choices, neither of which settle the circumstance in a morally satisfactory manner. In such cases, societal and individual moral rules can give no tasteful result to the chooser.
Answer:
Multipier is 1/(1-.8) = 5
a. AD Shortfall/Multiplier = 100/5 = 20 billion
b. FS/MPC = 20/ .8 = 25 billion
c. 20 billion
