Who Would a Macroeconomist Consider as Investment

question 190

Multiple Choice

Who would a macroeconomist consider as investment?

• A) Brianna purchases a bond issued by CP Rail
• B) Jerry purchases stock issued by BCE.
• C) Anita builds a new house
• D) Brenda buys an amount of gold.

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Definitions:

Neoclassical Economics

An economic theory that focuses on how consumer demand and production costs influence price, output, and income distribution in markets.

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

Rational Decision Making

A process of making choices that are logically consistent and aim at maximizing an individual's self-interest.

Behavioral Economics

A field of economics that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.