Question

ou invest $1,000 in stocks. Would a macroeconomist call this an investment? Why or why not? An economist would say no, because you are just buying an existing asset without creating any new productive capacity in the economy. yes, because you are purchasing something that may yield more value later. yes, because there is a concensus amongst Wall St. that this is considered an investment. no, because the minimum threshold for a stock purchase to be considered an investment is $10,000.

Answer 1

Answer:

An investment of $1,000 in stocks:

yes, because you are purchasing something that may yield more value later.

Explanation:

While Macroeconomics tries to explain aggregate phenomena such as economic growth, business cycles, unemployment, inflation, etc., this does not preclude this branch of economics from agreeing with a fact.  An investment remains an asset which the investor purchases in order to generate more future income.