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3. Problems and Applications Q3 Indicate whether each of the following descriptions represents saving or investment,...

3. Problems and Applications Q3

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist.

Description

Saving

Investment
This occurs when a person or firm purchasesd new capital.
This occurs when a person’s income exceeds his consumption.

Indicate whether each of the following situations represents saving or investment.

Situation

Saving

Investment
Your family takes out a mortgage and buys a new house.
You use your $200 paycheck to buy stock in AT&T.
Your roommate earns $100 and deposits it in his account at a bank.
You borrow $1,000 from a bank to buy a car to use in your pizza delivery business.
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