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23 April, 10:11

Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment a. Kyoko borrows money to build a new lab for her engineering firm. b. Rina purchases stock in NanoSpeck, a biotech firm. c. Musashi takes out a mortgage for a new home in Detroit. d. Jacques purchases a corporate bond issued by a car company.

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  1. 23 April, 10:58
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    The classification is shown below:

    Explanation:

    The saving refers to the amount which is exceeded than its consumption expenditure

    let us take an example if an individual salary is $20,000 and his expenditure suppose $5,000 so it saving is $15,000

    While the investment is the amount i. e invested to purchase some assets in terms of building, equipment, house, etc

    So the classification is as follows

    a. Kyoko borrows money to build a new lab for her engineering firm. = Investment

    b. Rina purchases stock in Nano Speck, a biotech firm. = saving

    c. Musashi takes out a mortgage for a new home in Detroit. = investment

    d. Jacques purchases a corporate bond issued by a car company. = saving
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