Which of the following would a macroeconomist consider as investment? a. Yassin
ID: 2428882 • Letter: W
Question
Which of the following would a macroeconomist consider as investment? a. Yassin purchases a bond issued by Starbucks. b. Yamu purchases stock issued by IBM. c. Alieu builds a new restaurant. d. All of the above are correct.Which of the following would a macroeconomist consider as investment? a. Yassin purchases a bond issued by Starbucks. b. Yamu purchases stock issued by IBM. c. Alieu builds a new restaurant. d. All of the above are correct.
Which of the following would a macroeconomist consider as investment? a. Yassin purchases a bond issued by Starbucks. b. Yamu purchases stock issued by IBM. c. Alieu builds a new restaurant. d. All of the above are correct.
Explanation / Answer
Solution :
All the above mentioned options are a part of investment.
a) Yassin purchases a bond issued by Starbucks : Purchase of bond is like a loan given by Yassin to Starbucks, and thus, provides a return on investment, thuus it is an investment.
b) Yamu purchases stock issued by IBM : Purchase of stock gives a part ownership to Yamu in IBM, thus, a claim on IBM's assets and earnings. So, it is an investment.
c) Alieu builds a new restaurant : A restaurant build today results in long term earnings, by the consumers of the restaurant. So, start of this business is also an investment.
d) This is hence, the correct option.