Explain the difference between saving and investment as defined by macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and buys a new house. b. You use your €500 wage payment to buy sto in BP. c. Your flatmate earns €200 and deposits it in he account at a bank. d. You borrow €5.000 from a bank to buy a car t use in your pizza delivery business.

Explain the difference between saving and investment as defined by macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and buys a new house. b. You use your €500 wage payment to buy sto in BP. c. Your flatmate earns €200 and deposits it in he account at a bank. d. You borrow €5.000 from a bank to buy a car t use in your pizza delivery business.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

typing only i will giveb5 upvotte s no chatgpt
Please take your time to help me because so many answers are wrong. Help with b, c and dConsider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50ra. In this economy, compute private saving, public saving and national saving.b. Calculate the equilibrium interest rate. include a graph to support answerc. Now suppose the G rises by 1,000. Compute private saving, public saving, andnational saving. Include a graph to support answerd. Calculate the new equilibrium interest rate. include a graph to support answer
Consider the two-period Neoclassical growth model seen in class. Let the utility function take the logarithmic form U(C)=In C.
3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Paolo buys a government bond. Sharon buys a new crane for her construction firm. Amy purchases shares of stock in Warm Breeze, a cloud computing company. Van purchases a new townhouse in Hartford. Saving Investment O O
Figure 7.2 45° C, S S Y=200 In Figure 7.2, if income is $200, then: consumption is $100. saving is also $200. consumption is zero. O saving is zero.
If current and future consumption are both normal goods, a decrease in the interest rate will necessarily A. cause savers to save more. B. cause borrowers to borrow less. C. reduce everyone’s current consumption. D. make everyone worse off. E. None of the above.
How does a decrease in interest rates typically affect consumer spending and investment? A. Consumer spending decreases, investment increases B. Consumer spending increases, investment decreases C. Both consumer spending and investment increase D. Both consumer spending and investment decrease
One of the benefits financial capital markets offer savers is the opportunity to earn income. a. Savers earn income in the form of purchasing b. Savers earn income in the form of through partial ownership of a corporations that they acquire by by lending money to corporations when they purchase
3. The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Caroline purchases new ovens for her cupcake-baking business. Antonio buys a government bond. Dmitri takes out a loan and uses it to build a new cabin in Montana. Frances purchases stock in Pherk, a pharmaceutical company.
Which of the following is an example of investment? OA. Continental buying Airbus planes O B. Mike buying an Apple iPad O C. Ron buying stocks and bonds. O D. Randy buying a BMW
The following table contains data on the relationship between saving and income. a. Rearrange the income and saving data into an ascending order of income and graph them on the accompanying grid. Income per Year $ Saving per Year 15,000 $ 0 10,000 5,000 20,000 1,000 -500 500 0 1,500 Rearranged Rearranged Income per Year Saving per Year
The figure shows the flows of income and expenditure in an economy. In 2008, Q was $1,100 billion, U was $250 billion, W was $550 billion, R was $100 billion, and Z was $80 billion. Calculate investment and saving. Investment is $220 billion. Saving is $ billion. ...