Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations

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Explain the difference between saving and investment as defined by a 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 $200 paycheck to buy stock in AT&T.

c. Your roommate earns $100 and deposits it in her account at a bank.

d. You borrow $1,000 from a bank to buy a car to use in your pizza delivery business.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:08 AM

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Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations

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To a macroeconomist saving occurs when a persons income exceeds his consum...View the full answer

Principles of economics

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