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Naddika [18.5K]
3 years ago
8

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

Business
1 answer:
S_A_V [24]3 years ago
8 0

Answer:

A : Stock - Investment ; B : Condominium - Investment ; C : Lab - Investment ; D : Deposit Certificate - Savings

Explanation:

Saving is the amount set aside from income, so as to not get consumed & kept for further usage.

Investment is the addition to capital stock during a period of time.

A. Dina purchases <u>stock</u> in Pherk, a pharmaceutical company : is addition to financial capital stock - So, It is Investment

B. Charles purchases a new <u>condominium</u> in Miami : is addition to real estate capital stock - So, It is Investment

C. Ana borrows money to build a new <u>lab</u> for her engineering firm : is addition to firm capital stock - So , It is Investment

D. Yakov purchases a certificate of <u>deposit</u> at his bank : reflects deposited savings set aside from consumption - So , It is Saving

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