Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist. a. This occurs when a person's income exceeds his consumption.
b. This occurs when a person or firm purchases new capital.

Indicate whether each of the following situations represents saving or investment.

1. Your family takes out a mortgage and buys a new house.
2. You use your $200 paycheck to buy stock in AT
3. You use your $200 paycheck to buy stock in AT&T. ( )
4. You borrow $1,000 from a bank to buy a car to use in your pizza delivery business. ( )

The owners of spokes bicycle shop worry that cash flow this winter may be insufficient to meet the current operating expenses. while they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. the owners can best resolve cash flow concerns by obtaining financing.

Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.