3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Saving Investment Clancy purchases a certificate of deposit at his bank. Hubert takes out a loan and uses it to build a new cabin in Idaho. Kate purchases shares of stock in Warm Breeze, a cloud computing company. Eileen purchases new mixers for her commercial bakery. OO
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- 3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Saving Investment Becky purchases new mixers for her commercial bakery. Alex purchases a certificate of deposit at his bank. Eileen purchases shares of stock in Bayzer, a pharmaceutical company. Clancy purchases a new townhouse in Hartford.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.3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Saving Eleanor buys a new crane for her construction firm. Kyoko purchases shares of stock in Bayzer, a pharmaceutical company. Darnell buys a government bond. Jacques takes out a mortgage for a new house in Cleveland. Investment
- 3. The meaning of saving and investment Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Paolo buys a government bond. Sharon buys a new crane for her construction firm. Amy purchases shares of stock in Warm Breeze, a cloud computing company. Van purchases a new townhouse in Hartford. Saving Investment O O3. 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.3. The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Caroline purchases new ovens for her cupcake-baking business. Antonio buys a government bond. Dmitri takes out a loan and uses it to build a new cabin in Montana. Frances purchases stock in Pherk, a pharmaceutical company.
- Question 7 Use the market for saving and investment to show the effect of the following: Firms are forced to close down due to the coronavirus outbreak. Real interest rate (percent per year) 10 8 6 4 2 The savings function [Select] The investment function [Select] The real interest rate [Select] 1.2 SLF The level of savings and investment [Select] DLF 1.4 1.6 1.8 2.0 2.2 Loanable funds (trillions of 2009 dollars)Classify 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.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 it
- Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations represent investment and which represent saving? Explain.a. Your family takes out a mortgage and buys a new house.You use your $200 paycheck to buy stock in Africel.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.The interest rate is 7 percent. Use the concept of present value to compare $200 to be received in 10 years and $300 to be received in 20 years.A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years.Should the firm undertake the project if the interest rate is 11 percent? 10 percent? 9 percent? 8 percent?Can you figure out the exact cutoff for the interest rate between profitability and nonprofitability?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.Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects: Student Return (Percent) Carlos 4 Felix 7 Janet 15 Assume borrowing and lending is prohibited, so each student uses only personal saving to finance his or her own investment project. Complete the following table with how much each student will have a year later when the project pays its return. Student Money a Year Later (Dollars) Carlos Felix Janet Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate rr. A student would choose to be a lender in this market if his or her expected rate of return is than rr. Suppose the interest rate is 6 percent. Among these three students, the quantity of loanable funds supplied would be ,…