You invest $1,000 in stocks. Would a macroeconomist call this an investment? Why or why not? An economist would say O no, because the minimum threshold for a stock purchase to be considered an investment is $10,000. O yes, because there is a concensus amongst Wall St. that this is considered an investment. O yes, because you are purchasing something that may yield more value later. O no, because you are just buying an existing asset without creating any new productive capacity in the economy.

You invest $1,000 in stocks. Would a macroeconomist call this an investment? Why or why not? An economist would say O no, because the minimum threshold for a stock purchase to be considered an investment is $10,000. O yes, because there is a concensus amongst Wall St. that this is considered an investment. O yes, because you are purchasing something that may yield more value later. O no, because you are just buying an existing asset without creating any new productive capacity in the economy.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.7P

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