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In your notebook explain the quotation.
“Do not save what is left after spending, but spend what is left after
saving.” – Warren Buffett
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- Is saving or spending better,and who is it better for?Explain.Discuss five ways which the country can do to increase its savings rate.Give at least three examples of how savings can be channeled into productive investment. Why is investment so important for an economy? What do you sacrifice when you save today?
- Why is savings equal to investmentWhat is a good exercise that you can perform if you want to reduce the amount of money that you spend each month? A. Stop at a gourmet coffee shop each day to buy coffee and think about your spending. B. Avoid using cash for your payments and put all of your expenses on a credit card. C. Keep a written record of your spending and total it at the end of the week. D. Use the ATM machine to withdraw large sums of cash out of your bank account each week.Claire inherited a bunch of random stuff from her grandmother, including a pile of dusty old government bonds. Claire decided to redeem all her government bonds and got a huge windfall of $100,000 in cash. Because of this windfall, Claire has decided to pursue her dream, and take two years off from her job to write a novel. Claire has to think about her budget for the year. She needs to be able to live off her windfall for both years. If she saves some money in the first year, she receives a return of r percent on her savings. Claire will need to pay an ad valorem capital tax, tK, on her windfall income. She will also need to pay an ad valorem consumption tax, tC, on whatever she consumes.1 In addition, because she isn’t working, Claire will get a tax credit of T dollars from the government. Write and explain Claire’s budget constraint for her two-year sabbatical. Use a graph to explain how every additional step changes her budget constraint. Remember to integrate the math with your…
- Explain what is meant by the term “investing?” How does investing differ from saving and trading?Which of the following is a major factor in determining an individual's supply of savings? A: Patience B: Investment C: GDPWhy do we use the present value of an asset or investment as basis for its value?