Suppose the president of a country uses $150 million to build bridges. The expenditures is entirely financed by borrowing. The government did not borrow any money before building the bridges. Before the government borrowing, the equilibrium amount of savings = $500 million. After the government borrowing, the equilibrium amount of savings = $600 million.

1. Regarding the expenditure on building the bridges, which component of GDP does it belong to?
2. How would this expenditure affect the laonable funds market?
3. How much is the amount on investments before the government borrowing?
4. How much is the amount of investments after the government borrowing?
5. Does equilibrium interest rate increase or decrease after the government borrowing?
6. Assume complete crowing out, how much is the decrease in household consumptions after the government borrowing?
7. Assume complete crowding out. does AD increase, decrease, or remain the same after government borrowing?