Explain the difference between saving and investment as defined by macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and buys a new house. b. You use your €500 wage payment to buy sto in BP. c. Your flatmate earns €200 and deposits it in he account at a bank. d. You borrow €5.000 from a bank to buy a car t use in your pizza delivery business.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter2: Thinking Like An Economist
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Explain the difference between saving and
investment as defined by macroeconomist.
Which of the following situations represent
investment? Saving? Explain.
a. Your family takes out a mortgage and buys a
new house.
b. You use your €500 wage payment to buy stock
in BP.
c. Your flatmate earns €200 and deposits it in her
account at a bank.
d. You borrow €5.000 from a bank to buy a car to
use in your pizza delivery business.
Transcribed Image Text:Explain the difference between saving and investment as defined by macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and buys a new house. b. You use your €500 wage payment to buy stock in BP. c. Your flatmate earns €200 and deposits it in her account at a bank. d. You borrow €5.000 from a bank to buy a car to use in your pizza delivery business.
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