ZuoTi.Pro
Question

3 Explain the difference between saving and investment! as defined by a macroeconomist. Which of the following situations rep
3. Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations rep
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Investment is the money invested on physical and financial assets like shares, equity that is likely to yield returns. Savings refers to the money that is not spent as consumption or for other use. It is the money deposited in banks or post office etc. Saving is the money left after consumption and other expenditures

3 a) It is an investment.as mortgage is taken out to get a new asset or house. Money is invested in house rather than keeping it as deposits.

b) It is an investment as money is invested in to buy stocks which is a financial asset.

c) It is a saving as the income earned is not used for consumption or investment purpose but is used to deposit in bank .

d) It is an investment since the borrowed money is used to purchase a car. Car is a physical asset.

0 0
Add a comment
Know the answer?
Add Answer to:
3 Explain the difference between saving and investment! as defined by a macroeconomist. Which of the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Howard is saving for a long holiday. He deposits a fixed amount every month in a...

    Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 14.5%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $9,000 in the account in two years' time? A. $328 В. $460 С. $525 D. $263 A home buyer buys a house for $800,000. She pays 20% cash, and takes a fixed-rate mortgage for ten years...

  • 1. Which of the following is NOT included in U.S. GDP? Multiple Choice toys produced by...

    1. Which of the following is NOT included in U.S. GDP? Multiple Choice toys produced by a U.S. firm located in China beer brewed in Colorado and purchased by a German tourist a car made by a Japanese auto producer in Kansas Incorrect corn grown in Iowa and exported to Africa 2. Which of the following is an example of investment, as a component of GDP? Multiple Choice the purchase of a truck by a delivery company the purchase of...

  • 9.) You have an investment account that started with ​$4 comma 000 10 years ago and...

    9.) You have an investment account that started with ​$4 comma 000 10 years ago and which now has grown to ​$8 comma 000. a. What annual rate of return have you earned​ (you have made no additional contributions to the​ account)? b. If the investment account earns 15 % per year from now​ on, what will the​ account's value be 10 years from​ now? a. What annual rate of return have you earned​ (you have made no additional contributions...

  • 1. Which of the following is true regarding spending and saving? a. Money that is spent...

    1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...

  • 10) An investment will pay you S120 in one year and $200 in two years. If...

    10) An investment will pay you S120 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) S294.69 B) $286.84 C) $299.07 D) $320.00 11. A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120.000 at the end of five years, or as equal annual payments at the end of each of the next five years. If...

  • 10) An investment will pay you 51 20 in one year and $200 in two years....

    10) An investment will pay you 51 20 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) $294.69 B) $286.84 C) $299.07 D) $320.00 10) 11). TU) A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years, or as equal annual payments at the end of each of the next...

  • Say that you purchase a house for $264,000 by getting a mortgage for $230,000 and paying...

    Say that you purchase a house for $264,000 by getting a mortgage for $230,000 and paying a down paymegt of $34,000. If you get a 20-year mortgage with an interest rate of 6 percent, what are the monthly payments? (Round your finel answer to 2 decimal places.) Рaуment What would the loan balance be in five years? (Use a payment value rounded to 2 decimal places. Round your final answer to 2 decimal places.) Loan balance If the house appreciates...

  • MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text?...

    MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text? A) a certificate of deposit issued by a bank B) a new automobile C) a United States Saving Bond D) a mutual fund held in a retirement account 2) Which of the following is NOT traded in the securities markets? A) stocks B) bonds C) derivatives D) real estate 3) The governmental agency that oversees the capital markets is the A) Federal Trade Commission....

  • This is one full study question. Is someone able to answer the following components of the...

    This is one full study question. Is someone able to answer the following components of the question for me? a,b,c,d Kira is 32 years of age and works full time for a manufacturing company as a supervisor. She earns $4,200 a month, net. She has no other sources of income. Her employer offers her benefits, including a Group RRSP. The employer matches 50% of her RRSP contribution, which is 10% of her monthly take home pay. As a result of...

  • After graduating from the University of Texas with a degree in Finance, Stan Morgan took a...

    After graduating from the University of Texas with a degree in Finance, Stan Morgan took a position as a stockbroker with Morgan Stanley in Austin. Although he had several college loans to make payments on, his goal was to set aside funds for the next eight years in order to make a down payment on a house. After considering the various suburbs of Austin, Stan chose Round Rock as his desired future residency. Based on median house price data, he...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT