Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Investment - End of Chapter Problem You invest $ 1 , 0 0 0 in stocks. Would a macroeconomist call this an investment? Why or

Investment - End of Chapter Problem
You invest $1,000 in stocks. Would a macroeconomist call this an investment? Why or why not?
An economist would say
no, because you are just buying an existing asset without creating any new productive capacity in the economy. no, because the minimum threshold for a stock purchase to be considered an investment is $10,000. yes, because you are purchasing something that may yield more value later.
yes, bifuse there is a concensus amongst Wall St. that this is considered an investment.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics A Problem-Solving Approach

Authors: Luke M. Froeb, Brain T. Mccann

2nd Edition

B00BTM8FK0

More Books

Students also viewed these Economics questions