Your roommate earns RM100 and deposits it in her account at a bank. d. You borrow RM1,000 from the bank to buy a motorbike to use in your pizza delivery business. C.
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- Which of the following situations represents investment? Saving? ExplainYour family takes out a mortgage and buys a new house. You use your paycheque to buy stock in Sagicor Financial Services.6. In macroeconomist mind, Explain how they are able to distinguish the terms between investment and saving. Then explain this condition either entering investment or saving and explain why you choose it. a. When your family takes out a loan from the banks and buys a new house. b. When you use your $250 paycheck to buy stock in UNILEVER. c. When your friend earns $50 and deposits it in his account at the bank. d. When you borrow $2,000 from a bank to buy a car to use in your business.Which of the following should NOT be considered as partof fixed investment?1. Toyota buys a new robot for its automobile assembly line.2. Apple computer builds a new factory.3. Exxon increases its holding of bonds and stocks infinancial markets.4. An accountant buys a newly built home for herself and her family.5. None of the above.
- The following table contains data on the relationship between saving and income. a. Rearrange the income and saving data into an ascending order of income and graph them on the accompanying grid. Income per Year $ Saving per Year 15,000 $ 0 10,000 5,000 20,000 1,000 -500 500 0 1,500 Rearranged Rearranged Income per Year Saving per YearConsumption/Savings 1000 800 600 400 200 0 -200 Select one: 200 400 600 800 1000 1200 1400 1600 S Refer to the graph above to answer this question. What is the equation for the saving function? A. S=200+ 0.4Y. B. S=-200+ 0.6Y. X C. S-200+ 0.8Y. OD. S-200 +0.2Y. OE. S=200 - 0.2Y. IncomeThree students have each saved $1,000.each has an investment opportunity in which he or she can invest upto $2,000.Here are the rates of return on the students investment project:a.If borrowing and lendind are prohibited,so each student uses only personal saving to finance his or her own investment project ,how much will each student have a year later when the project pays its return?b.Now suppose their school opens up a market for loanable funds in which students ran borrow and lend among themselves at an interest rate r.What would determine whether a student would choose to be a borrower or lender in this market?c.Among these three students,what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent?At 10percent?d.At what interest rate would the loanable funds market among these three students be in equilibrium?At this interest rate,which student(s) would borrow and which student(s) would lend?e.At the equilibrium interest rate,how…
- Economics Which of the following situations represent saving? a) Mike borrows $8,000 from a bank and buys a truck for his personal use. b) John uses his $500 paycheck to buy stock in Microsoft. c) Austin borrows $9,000 from a bank to buy a truck to use in his lawn mowing business. d) Your roommate earns $2000 and spends ita. The supply of loanable funds slopes upward because O higher interest rates make it more costly to borrow. O savers will make more funds available at lower interest rates. O investors will want more money made available at higher interest rates. savers will make more funds available at higher interest rates. b. The demand for loanable funds slopes downward because O few investment projects yield a high rate of return. O many investment projects yield an equal.rate of return. O many investment projects yield a high rate of return. O few investment projects yield a low rate of return.Geometric gradient. C.1.) A graduating class of civil engineers decides they will present the engineering college with a gift of $100,000 at their twenty-fifth reunion. There are 50 in the class and they can invest at 8 percent. They plan to start out giving a small amount at the end of the first year and in- crease their gifts to the class fund by 10 percent each year. Find the amount each graduate would donate at the end of the first year in order to reach their class goal of $100,000 at the end of 25 years. (Ans. C= $10.03)
- 3. The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Dmitri purchases a new condominium in San Diego. Caroline purchases new ovens for her cupcake-baking business. Antonio purchases a certificate of deposit at his bank. Frances purchases stock in Goohoo, an information technology company.7. A student decides to save money for a trip to Uluru. She opens a savings account with $300, and sets up a daily automatic transfer of 2 from her regular account into her savings account. The bank pays 5.5% interest per year into her savings account, compounded continuously. The student plans to withdraw the money from the bank at the end of two years. She is, however, worried that she isn't saving enough, and decides to model the problem to find out how much she will have at the end of two years. Let M(t) be the amount of money in her savings account at time t. She opens the account at time t 0. Assume that one year has 365 days. (a) Her first model is the following, with time in years: dM dt = 0.06M + 2, M(0) = 300. A friend of hers tells her that there is a problem with this model. What is the prob- lem? (b) She realizes where she went wrong, and fixes her model. There are two standard ways to fix it, using time in years or using time in days. Make a choice, and fix the model. (c)…4. In a capitalist market economy, the decision to save is made by the same people who make the major investment decisions