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3 years ago

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

Business

1 answer:

Gennadij [26K]3 years ago

7 0

Answer: See explanation

Explanation:

Savings is the income that's not spent by an economic agent. Savings relates to banking.

Investment is when capital goods are bought in order to produce further goods.

Based on the definition above, then the following are classified below:

a. Edison purchases a certificate of deposit at his bank = Savings

b. Maria purchases stock in NanoSpeck, a biotech firm. = Savings

This is savings as it wasn't a capital good that was bought.

c. Hilary purchases new ovens for her cupcake-baking business. = Investment

This is an investment as she purchases a capital good what will be used for her business.

d. Kevin takes out a loan and uses it to build a new cabin in Montana = Investment

This is an investment as the money isn't saved but rather invested for productive use.

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Answer

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Step-by-step explanation:

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Answer:

<u>expansionary; will be equal to</u>

Explanation:

<em>Remember</em>, monetary policies are basically divided into:

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3 years ago

Cute Camel Woodcraft Company is considering a one-year project that requires an initial investment of $500,000; however, in rais

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Answer:

The correct answer is "32.076%".

Explanation:

Given:

Initial investment,

= $500,000

Cash inflows,

= $500,000

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= $500,000\times 6 \ percent$

= $30,000$ ($)

The total cost will be:

= $Initial \ investment+Floatation \ cost$

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= $530000$

hence,

The rate of return will be:

= $\frac{Inflows}{Cost} -1$

= $\frac{700000}{530000} -1$

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