Macroeconomics
11th Edition
ISBN: 9781260506891
Author: Colander
Publisher: MCG
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What is Capital expenditure?
Complete the following table. Calculate the level of consumption and savings.
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.
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- A friend asks you to explain the difference between saving and investment. Explain the difference.arrow_forwardDiscuss the overall purpose people have for investing. Define investmentarrow_forwardWhat is national saving? What is privet saving ?what is public saving? How are these three variables related?arrow_forward
- Explain the difference between the stock variable and a flow variable in economics with one example of each.arrow_forwardClassify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Neha borrows money to build a new lab for her engineering firm. Teresa purchases stock in Pherk, a pharmaceutical company. Sam purchases a new condominium in San Francisco. Lorenzo purchases a certificate of deposit at his bank.arrow_forwardDefine private saving, public saving and national saving. How are they related?arrow_forward
- Draw a savings and investment graph. Explain the logic of why investment slopes down and savings slopes up.arrow_forwarda borrower cannot become a saver if the rate of interest decreases, but might become a saver if the rate of interest increases. is this true or false? carefully explain your answer (which must prove or disprove each part of the statement) using any appropriate diagramsarrow_forwardBriefly discuss THREE economic policies that encourages household savings.arrow_forward
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