You are in a boat on a perfectly calm lake. There's an anchor in the boat. You drop the anchor overboard and it sinks to the bottom of the lake. During this process, does the level of the lake rise, fall, or stay the same?
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The anchor in the boat adds to the boat's weight, and the presence of the anchor there causes a displacement of an amount of water that weighs as much as the anchor. (The upward buoyant force due to the displaced water has the same size as the weight of the anchor, by Newton's law.) I.e., the anchor in the boat displaces a weight of water equal to its own weight. When the anchor is at the bottom of the lake it displaces an amount of water equal to its own volume. Its weight is greater than the weight of an equivalent volume of water (that's why it sank), so it displaces more water when in the boat than when at the bottom. The water level of the lake drops when the anchor is thrown overboard.