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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.

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