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 €500 wage payment to buy stock in BP.

c. Your flatmate earns €200 and deposits it in her account at a bank.

d. You borrow €5,000 from a bank to buy a car to use in your pizza delivery business.

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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