3. The meaning of saving and investmentClassify each of the following based on the macroeconomic definitions of saving and investment.Saving InvestmentDmitri purchases a new condominium in San Diego.Caroline purchases new ovens for her cupcake-baking business.Antonio purchases a certificate of deposit at his bank.Frances purchases stock in Goohoo, an information technology company.

Answered: Classify each of the following based on…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. The meaning of saving and investment
Classify each of the following based on the macroeconomic definitions of saving and investment.
Saving Investment
Dmitri purchases a new condominium in San Diego.
Caroline purchases new ovens for her cupcake-baking business.
Antonio purchases a certificate of deposit at his bank.
Frances purchases stock in Goohoo, an information technology company.

Expert Solution

Step 1

Saving is the piece of pay not spent on current consumption. At the end of the day, it is the cash saved for some time later and not spent right away.

Investment definition is a resource gained or put resources into to create financial stability and set aside cash from the well-deserved pay or appreciation. Venture importance is basically to get an extra type of revenue or gain benefit from the Investment over a particular timeframe.

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