Explain the difference between savings and investment as defined by macroeconomists. Which of the following situation represent
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a. You borrow from a bank and use the money to construct a garage for your car.
b. David Letterman spends $20 million to buy a mansion built in 1950.
c. You earn $200 and deposit it in your bank account.
d. Rachel buys 100 shares of existing Microsoft stock.
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a The expenditure can be called to be an investment sinc...View the full answer
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