Chapter 7, Problem 1QE

Explain the difference between the stock variable and a flow variable in economics with one example of each.

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.

Define private saving, public saving and national saving. How are they related?

Draw a savings and investment graph. Explain the logic of why investment slopes down and savings slopes up.

a 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 diagrams

Briefly discuss THREE economic policies that encourages household savings.

Some studies have found that saving is not very sensitive to the rate of return on saving. a.true b.false

What is the public saving? what is the private saving?