00:01
So as long as we can clearly distinguish here, the difference between savings and investment, this will be a really easy question.
00:06
The idea of savings is the act of choosing not to consume, right? when i say that i am not going to consume my money, that's what is called savings.
00:18
Investment is the act of devoting resources to increase future production.
00:32
Now, those are very similar because one of the reasons you might save would be to do investment, right? but it's the actual acts are usually separated.
00:44
Like you save by putting in your bank, your money in the bank, and then the bank loans your savings to a firm so the firm can build a factory.
00:50
Savings and investment end up being equal, but the acts are separated.
00:55
So if we go through one, the bond purchase, this is savings because, you know, you see, there's no thing actually being constructed.
01:07
You're getting a piece of paper and giving someone money.
01:10
Someone else is getting some money and giving you a piece of paper.
01:12
You see that nothing was constructed, nothing was built.
01:15
This is just simply savings.
01:18
Two, we have a new condominium...