1. For each of the following, is it an example of investment spending, investing in financial assets, or investing in physical assets.

a) Rupert Money bucks buys 100 shares of existing Coca-Cola stock.

b) Rhonda Movie star spends $10 million to buy a mansion built in the 1970s.

c) A Basketball star spends $10 million to build a new mansion with a view of the Pacific.

d) Rawlings builds a new plant to make catcher's mitts.

e) China buys $100 million in Canadian government bonds.

2.a)Scenario 1: Suppose there are two countries that have the same nominal GDP. Dothey have the same standard of living? Why or why not?

b)Scenario 2: Suppose there are two countries and nominal GDP in one country is twice as large as the other country. Do they have the same standard of living? Why or why not?