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 paycheck to buy stock in AT&T.

c. Your roommate 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

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Dec 14, 2012 06:08 AM

See More Questions

Explain the difference between savings and investment as defined by macroeconomists. Which of the following situation represent investment? Saving? Explain. Savings is that part of income which is...
In 100 words or fewer, explain the difference between NPV and IRR.
In 75 words or fewer, explain the difference between stock dividends and stock splits. Include the effect on stock values.
How can we measure a security's contribution to the risk of the market portfolio?
To use Definition 2.7 to check whether a subspace is t invariant, we seemingly have to check all of the infinitely many vectors in a (nontrivial) subspace to see if they satisfy the condition. Prove...
What are the characteristics of entropy?
With a neat sketch describe open belt and cross belt drive.
The Fed cuts the Federal Funds rate and the Discount rate and the Prime goes down to 3.5 percent. Al Truistyk owns an exercise center and needs to upgrade his equipment in order to meet his customers...
A disk (Idisk = 12MR2) of mass 200kg and radius 2m is rotating at rad/s. A small object of mass 40 kg then collides with and sticks to the disk at a location halfway between the center and the edge....
As the bookkeeper of Maritime Internet Access Service of Amherst, use the information that follows to prepare:1.?A worksheet for August, the end of the first quarter in the current fiscal year2. An...
Many workers hold large amounts of stock issued by the firms at which they work. Why do you suppose companies encourage this behavior? Why might a person not want to hold stock in the company where...
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases,...
On January 1, 2012, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $720,000. The 10 percent non-controlling interest had an assessed fair value of $80,000 on that date....
Discuss the merits and drawbacks of each of the methods presented in the chapter to correct for autocorrelation.
Why does stickiness occur more often in time series data?
In the formulation in Exercise 10.16, the implicit assumption made was that the problem was separable by shift. Why might this not be the case in practice? What other factors might affect the...
How does an omitted variable affect the error term in a model and what implications does that have for autocorrelation?
What are the primary causes of autocorrelation? Which is more difficult for the researchers to correct for?
SodaStream (www.sodastream.com) is the worlds leading manufacturer and distributor of sparkling water makers, which enable consumers to easily transform ordinary tap water into sparkling water and...
Outline some of the major problems confronting an international advertiser.
Yvonne owns four cottages, all let furnished with a view to profit. None of the cottages is ever let to the same tenant for more than 31 consecutive days. In 2017-18 the number of days each cottage...
Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your...
It is a hot day, and Bert is thirsty. Here is the value he places on a bottle of water: Value of first bottle..... $7 Value of second bottle.....5 Value of third bottle.....3 Vale of fourth...
It is a hot day, and Bert is thirsty. Here is the value he places on a bottle of water: Value of first bottle..... $7 Value of second bottle.....5 Value of third bottle.....3 Vale of fourth...
ABC Inc. curently has a share price of $44. If they are paying a dividend of $1.13, with a cum dividend date of November 1, would would you expect their share price to be on November 2nd? Please give...
Does China benefit from a weak currency?Does Us benefit from a strong currency? Why? Please explain
You purchased 10 ASD June 45 puts and the company declares a 10% stock dividend. How are the terms of the option contract then changed?

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

Question:

Step by Step Answer:

To a macroeconomist saving occurs when a persons income exceeds his consum...View the full answer

Principles of economics

Students also viewed these Economics questions