Summary Of Final Assessment Part 2: Questions And Answers
Final Assessment Part 2 – Answer 10 of the following 13 questions (worth 10 points each). Submit your response as a single Word document. Copy any graphs or charts created in Excel into this single word file.
Chapter 11
1) For each of the following, decide whether you agree or disagree and explain your answer:
a) Savings and investment are just two words for the same thing.
I disagree. Savings is by definition a household income minus consumption spending. It is a portion of that income that is set aside for future use. Investment is a new purchase from capital, plants, equipment, and inventory. Savings are done by households and investments are done by companies.
b) When I buy a share of Microsoft stock, I have invested when I buy a government
Chapter 11
1) For each of the following, decide whether you agree or disagree and explain your answer:
a) Savings and investment are just two words for the same thing.
I disagree. Savings is by definition a household income minus consumption spending. It is a portion of that income that is set aside for future use. Investment is a new purchase from capital, plants, equipment, and inventory. Savings are done by households and investments are done by companies.
b) When I buy a share of Microsoft stock, I have invested when I buy a government