Which of the following do economists consider an investment? A. The purchase of bonds B. The purchase of stocks C. The construction of a new factory D. The acquisition of gold C. The construction of a new factory When a person's income is greater than her spending on consumption goods, then she is: A. dissaving B. saving C. Investing D. Disinvesting B. savings The AIDS epidemic __________ the savings rate in Africa. A. maintains B. increase C. decreases D. Indeterminately changes C. decreases The main reason people save during their working years is: A. a preference toward a smooth consumption path over time. B. a high time preference for the present. C. an exception that they will die early. D. A preference toward matching income with spending over time