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

Question:

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 wage payment to buy stock in BP.

c. Your flatmate 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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

Question Posted: Nov 02, 2024 07:00 AM

See More Questions

In terms of Federal tax consequences, why are lifetime transfers to charity preferable to testamentary transfers?
Briefly explain why short-form prospectuses are permitted by regulators for a large percentage of seasoned issues, and explain why they have led to the growth in popularity of bought deals.
Sandoval Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May the company had the following purchases and sales for its Model 25 Sureshot camera. Instructions(a)...
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...
Valero Energy, a petroleum company, reported net income of $1,803.8 on revenues of $54,618.6 for Year 4. Interest expense totaled $359.7, and preferred dividends totaled $12.5. Average total assets...
Devah Pager's study on "The Mark of a Criminal Record" most closely resembles the research method of which is the best method to determine a . Content analysis / Patterns in data b . Interviews /...
Declines in share prices are sometimes viewed as harbingers of future declines in real GDP. Why do you suppose that might be true?
Suppose the government borrows 5 billion more next year than this year. a. Use a supply-and-demand diagram to analyse this policy. Does the interest rate rise or fall? b. What happens to investment?...
=+2 Post the entries in requirement 1 to ledger accounts for Finished goods control, Conversion costs control, Conversion costs allocated and Cost of goods sold.
Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. To prepare a master budget for January, February, and March, use the following information. The companys...
7 Part 2 of 2 30 points Skipped Required information [The following information applies to the questions displayed below] Delph Company uses a job-order costing system with a plantwide predetermined...
Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $370,000 for...
Andretti Company has a single product called a Dak. The company normally produces and sells 83,000 Daks each year at a selling price of $58 per unit. The company's unit costs at this level of...
) Part C (1) Chapter 6-Journal entries for Capital Projects Fund transactions At the start of 2019, Croton's Capital Projects Fund had no assets or liabilities. Prepare appropriate journal en- tries...
A 5-cm-diameter spherical ball whose surface is maintained at a temperature of 70C is suspended in the middle of a room at 20C. If the convection heat transfer coefficient is 15 W/m2 C and the...
A statistical study shows that the fraction of television sets of a certain brand that are still in service after x years is given by f (x) = e-0.15x. (a) What fraction of the sets are still in...

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

Question:

Step by Step Answer:

Economics

Students also viewed these Business questions