Question

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

a. Crystal purchases stock in Pherk, a pharmaceutical company.
b. Brian purchases a new condominium in Dallas.
c. Alyssa purchases new ovens for her cupcake-baking business.
d. Tim purchases a certificate of deposit at his bank.

Answer 1

Step-by-step explanation:

a. Crystal purchases stock in Pherk, a pharmaceutical company - Savings

She brought the stock from the money in his savings

b.Brian purchases a new condominium in Dallas- Investment

A condominium is property with a house and some more space you can sell it as well. So an investment

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

New ovens are an investment as it will be used in sale of her cupcake-baking business

d. Tim purchases a certificate of deposit at his bank- Savings

Any amount in bank is a saving.