Is each of the following situations an example of savings, investment, or neither? In each case explain your choice.
(a) A savings and loan association lends money for the purchase of "junk" (not backed) bonds.
(b) John's income is $25,000 per year; $22,000 is spent on consumer goods and the remaining money is used purchase stock in the local electric company.
(c) Just before retirement a couple sells their shares of Pacific Bell stock and puts the proceeds in a bank savings account.
(d) The city of Los Angeles rebuilds highways after an earthquake.
(e) In order to improve the income earning potential of current welfare recipients, the federal government increases the size of income transfers.

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The Answer of Is each of the following situations an example of savings, investment, or neither? In each case explain your choice.
(a) A savings and loan association lends money for the purchase of "junk" (not backed) bonds.
(b) John's income is $25,000 per year; $22,000 is spent on consumer goods and the remaining money is used purchase stock in the local electric company.
(c) Just before retirement a couple sells their shares of Pacific Bell stock and puts the proceeds in a bank savings account.
(d) The city of Los Angeles rebuilds highways after an earthquake.
(e) In order to improve the income earning potential of current welfare recipients, the federal government increases the size of income transfers.

Is Each of the Following Situations an Example of Savings