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10 November, 17:41

Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrows money to build a new lab for her engineering firm. 2. Rina purchases stock in NanoSpeck, a biotech firm. 3. Musashi takes out a mortgage for a new home in Detroit. 4. Jacques purchases a corporate bond issued by a car company.

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  1. 10 November, 19:15
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    The classification is shown below:

    Explanation:

    The saving refers to the amount i. e above its consumption expenditure let us take an example if an individual salary is $100,000 and its expenditure assumes $50,000 then it saves $50,000 so the $50,000 is the savings. While the investment is the amount that is spent to buy some assets in terms of building, machinery, home, etc.

    So the classification is presented below:

    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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Home » Business » Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrows money to build a new lab for her engineering firm. 2. Rina purchases stock in NanoSpeck, a biotech firm. 3.
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