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Explain the difference among saving and investment as explained by macroeconomists.
Which of the following situations represent investment or saving?
Explain:
a) You use your Rs 20000 pay check to buy stocks in Reliance
b) You borrow Rs. 100000 from a bank to buy a car to use in your company
c) Your room mate earns Rs.1000 and deposits it in her bank account
Suppose a company is considering two investment projects. Both projects require an upfront expenditure of $30 million. The company estimates that the cost of capital is 10% and tha
Define the term- inflation Inflation between two points in time is defined as the percentage increase of price index between these two points in time.
what is the function of a budget
Consider following 5,000 value securities. Bond Coupon Rate Selling price coupon payment yield to maturity% 6% $5000 6% $5500 10% $5000 12% $4500 A. Are those securities abov
how the theories of trade cycle affects in the business
2. Given the following information: Consumers are very optimistic about the future. The price of oil has just doubled. The money supply is growing at a 6% rate. The government has
In the long run, imports will most likely be paid for with: a. Aexports. b. The sale of real and financial assets. c. the extension of credit. d. higher domestic unempl
What are prices indexes designed to measure? Outline how they are constructed. When GDP and other income figures are compared across time periods, explain why it is important to ad
A textile mill releases pollution into nearby wetlands, and the associated health and ecological damages are not considered in the private market. Suppose you observe the following
Suppose that this year's the money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5trillion. a. What is the price level? b. What is the velocity of money
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