Ask Question
28 February, 05:18

Classify each of the following based on the macroeconomic definitions of saving and investment.

1. Kate borrows money to build a new lab for her engineering firm.

2. Manuel purchases a new condominium in Detroit.

3. Hubert purchases a corporate bond issued by a car company.

4. Poornima purchases stock in Goohoo, an information technology company.

+3
Answers (1)
  1. 28 February, 07:23
    0
    All four reflect Investment

    Explanation:

    Saving is portion of income kept aside from consumption, for further precautionary purposes.

    Investment is the addition to capital stock of by a person or enterprise.

    'Kate borrows money to build a new lab for her engineering firm' : is an Investment as it adds capital stock i. e lab in his engineering firm Manuel purchases a new condominium in Detroit : is an Investment as it is addition to his real estate capital stock Hubert purchases a corporate bond issued by a company : is an investment as it is addition to financial capital stock Poornima purchases stock in Goohoo, an IT company : is an Investment as it is addition to financial capital stock
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Classify each of the following based on the macroeconomic definitions of saving and investment. 1. Kate borrows money to build a new lab ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers