Question

3. The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Yvette borrows money to build a new lab for her engineering firm. Sean purchases a corporate bond issued by a car company. Cho purchases stock in NanoSpeck, a biotech firm. Bob purchases a new condominium in Chicago.

Answer 1

Answer and Explanation:

The classification is as follows:

1. As the money is to be borrowed to built a new lab, so it is an Investment.

2. As the corporate bond is issued by a car so it should be the savings

3. The stock is purchased so it should be the saving

4. The purchase of the new condominium should be considered as an investment

In this way it should be classified