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dolphi86 [110]
3 years ago
14

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist. Description

Saving Investment This occurs when a person or firm purchased new capital. This occurs when a person’s income exceeds his consumption. Indicate whether each of the following situations represents saving or investment. Situation Saving Investment Your family takes out a mortgage and buys a new house. You use your $200 paycheck to buy stock in AT&T. 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.
Business
1 answer:
bogdanovich [222]3 years ago
6 0

Answer:

Your family takes out a mortgage and buys a new house. - Invesment

When a household purchases a new house, it is considered an investment according to macroeconomic theory.

You use your $200 paycheck to buy stock in AT&T. - Investment.

Stock is a form of capital because it is bought with the expectation of getting a return. Buying stock is a form of investment.

Your roommate earns $100 and deposits it in his account at a bank. - Saving.

Your roommate does not need the $100 to pay for his daily expenses, and instead, saves that money at the bank. It is a form of saving as the name of the transaction implies.

You borrow $1,000 from a bank to buy a car to use in your pizza delivery business. - Investment.

You are borrowing to buy a car because you feel the car will provide you economic benefits in the future. Thus, the car is a capital asset, and a form of investment.

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If automobile producers expect prices of automobiles to increase in the near future, what happens to supply today?
Elanso [62]

Answer:

It will increase

Explanation:

This is due to the "law of supply". It says that whenever the prices increase, the supply will increase, because if the prices are higher, they can win more money as they sell their goods (cars in this case) and this encourages the supply to produce more and place more quantity into the market.

In other words, just follow one of the basic laws in economics, the law of supply, which says "whenever the prices rise, the quantity supplied will also rise, ceteris paribus". By the way, ceteris paribus is latin for "all other things equal" and it means that all other factors remain unchanged (the same).

3 0
3 years ago
The current five year euro yen rate is 6% per annum (compounded annually). the five year eurodollar rate is 8.5%. what is the im
Arturiano [62]
<span>The implied forward premium or discount of the yen (over the current spot rate) for a five year forward contract would be 12.36 percent premium.</span>
3 0
3 years ago
You are torn between two saving accounts where to put your $1,500 in scholarship money for a year until you need it for next yea
mrs_skeptik [129]

Answer:

I would choose to invest in C-T bank since it offers $7.3675 more compared to Bank Wan

Explanation:

The two options can be expressed as shown;

Option 1: Bank Wan

A=P(1+r/n)^nt

where;

A=Total amount after a given time

P=Initial deposit

r-Annual interest rate

n=number of times the interest is compounded annually

t=number of years of the investment

In our case;

P=$1,500

r=2.5%=2.5/100=0.025

n=365 days

t=1 year

Replacing;

A=1,500(1+0.025/365)^(365×1)

A=1,500(1.02530

A=1,537.97

Total amount after a year=$1,537.97 for Bank Wan

Option 2: C-T Bank

P=$1,500

r=3%=3/100=0.03

n=2

t=1

Replacing;

A=1,500(1+0.03/2)^(2×1)

A=1,500(1.015)^2

A=1,545.3375

Total amount after a year=$1,545.3375 for C-T Bank

Total amount received to be received from C-T Bank-Total amount to be received from Bank Wan

=(1,545.3375-1,537.97)=$7.3675

I would choose to invest in C-T bank since it offers $7.3675 more compared to Bank Wan

7 0
3 years ago
How would I write ChinaDollStudios as an abbreviation in Chinese?
Katarina [22]
ChinaDollStudios的缩写
5 0
3 years ago
Select the type of economic system that best matches each of the given descriptions.
Svetllana [295]

Answer:

based on government control- command

of resources and production

based on traditions and customs- traditional;

based on the forces of supply and demand- market

based on price rationing and includes- mixed

some government involvement

Explanation:

i dont cap

7 0
3 years ago
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