Q1. Describe the dissimilarity between the saving and investment as defined by the macroeconomists. Which of the given conditions represent investment or saving? Describe:
a) You utilize your Rs 20000 pay check to purchase stocks in Reliance.
b) You borrow Rs. 100000 from a bank to purchase a car to use in your company.
c) Your room-mate earns Rs.1000 and deposits it in her bank account.
Q2. Some of the economists worry that the ageing population of industrial countries are going to begin running down their saving just whenever the investment appetite of emerging economies is growing (Economists, May 6, 1995). Describe the phenomenon in the context of the loanable fund market.