The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Kate purchases stock in Pherk, a pharmaceutical company. Hubert purchases a new condominium in Houston.
Clancy purchases a certificate of deposit at his bank.
Eileen borrows money to build a new lab for her engineering firm."

Kate purchases stock in Pherk, a pharmaceutical company.

Hubert purchases a new condominium in Houston.

Clancy purchases a certificate of deposit at his bank.

Eileen borrows money to build a new lab for her engineering firm.

In macroeconomics, investment refers to the goods that we purchase not to be consumed right away, but instead will be used to produce more goods or create wealth in the future. E.g. purchase of equipment, new homes by private consumers, additional inventories, etc.

Savings refers to the money that households have left after paying all their taxes, debts, obligations and consumption expenses. E.g. savings in banks

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