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