AbsolutePunk.net
   Username
Password
 
Share
05:53 PM on 08/05/07 
#1
Offline
User Info.
bobbo8
@RM_Mathews
bobbo8's Avatar
Revere, Ma
Male - 27 Years Old
Does anyone here knows macroeconomics (bonds, savings, and investments, to be more specific) and can help me with my hw?
05:57 PM on 08/05/07 
#2
Offline
User Info.
Jess7286
No Avatar Selected
Westwood, CA
Female - 28 Years Old
What do you need?

Yay for my major.
06:00 PM on 08/05/07 
#3
Offline
User Info.
Love As Arson
Resident Marxist
Love As Arson's Avatar
The Motherland
Male - 29 Years Old
Just watch Wall Street, and you'll find all the information you need to know.
06:12 PM on 08/05/07 
#4
Offline
User Info.
dc0511
Holdin' it down
dc0511's Avatar
Scotch Plains, NJ
Male - 24 Years Old
I just finished AP Macro this year, what's up?
06:12 PM on 08/05/07 
#5
Offline
User Info.
bobbo8
@RM_Mathews
bobbo8's Avatar
Revere, Ma
Male - 27 Years Old
1. For each of the following pairs, which bond would you expect to pay a higher interest rate? Explain.
a) A bond of the U.S. government or a bond of an East European government
b) A bond that repays the principal in year 2005 or a bond that repays the principal in year 2025
c) A bond from Coca-Cola or a bond from a software company you run in your garage
d) A bond issued by the federal government or a bond issued by New York State

5. Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations represent investment? Saving? Explain.
a) Your family takes out a new mortgage and buys a new house.
b) You use your $200 paycheck to buy stock in AT&T.
c) Your roommate earns $100 and deposits it in her account at a bank.
d) You borrow $1000 from a bank to buy a car to use in your pizza delivery business.
07:58 PM on 08/05/07 
#6
Offline
User Info.
Buried A Lie
Turn It Up! (A Little Louder)
Buried A Lie's Avatar
East Lansing, MI
Male - 27 Years Old
1. For each of the following pairs, which bond would you expect to pay a higher interest rate? Explain.
a) A bond of the U.S. government or a bond of an East European government
b) A bond that repays the principal in year 2005 or a bond that repays the principal in year 2025
c) A bond from Coca-Cola or a bond from a software company you run in your garage
d) A bond issued by the federal government or a bond issued by New York State

5. Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations represent investment? Saving? Explain.
a) Your family takes out a new mortgage and buys a new house.
b) You use your $200 paycheck to buy stock in AT&T.
c) Your roommate earns $100 and deposits it in her account at a bank.
d) You borrow $1000 from a bank to buy a car to use in your pizza delivery business.

a) east european
b) 2025
c) software comp
d) New York state

a) investment
b) savings
c) savings
d) investment
08:00 PM on 08/05/07 
#7
Offline
User Info.
Chancetobe
Only the good die young
Chancetobe's Avatar
Cleveland/Upstate NY
Female - 26 Years Old
a) east european
b) 2025
c) software comp
d) New York state

a) investment
b) savings
c) savings
d) investment, 98% sure for this one EDIT: 100% sure

This isn't investment?
08:04 PM on 08/05/07 
#8
Offline
User Info.
Buried A Lie
Turn It Up! (A Little Louder)
Buried A Lie's Avatar
East Lansing, MI
Male - 27 Years Old
This isn't investment?


Nope, investments are spending on capital goods, like a building for your restaurant, or stove for the kitchen in the restaurant. Basically just things you need for your firm. This also includes only buying NEW houses.
08:06 PM on 08/05/07 
#9
Offline
User Info.
Jess7286
No Avatar Selected
Westwood, CA
Female - 28 Years Old
Uh, you wouldn't be able to know which had the higher interest rate between US or international bond. It depends on the exchange...
08:06 PM on 08/05/07 
Offline
User Info.
tiny222
july 22
tiny222's Avatar
Iowa
Female - 27 Years Old
I'm taking micro this semester. Wish me luck!! Haha. Macro is next semester.
08:06 PM on 08/05/07 
Offline
User Info.
Jess7286
No Avatar Selected
Westwood, CA
Female - 28 Years Old
And, buying stock in AT&T is an investment.
08:09 PM on 08/05/07 
Offline
User Info.
Juliana101
Sink.Philadelphia.Sink
Juliana101's Avatar
Philadelphia, PA
Male - 26 Years Old
And, buying stock in AT&T is an investment.

That's what I did. I got it at 26.60 a share. Woot!
08:09 PM on 08/05/07 
Offline
User Info.
Buried A Lie
Turn It Up! (A Little Louder)
Buried A Lie's Avatar
East Lansing, MI
Male - 27 Years Old
Uh, you wouldn't be able to know which had the higher interest rate between US or international bond. It depends on the exchange...


The U.S. bond has virtually no risk, therefore very low interest rate. Eastern Europe governments are pretty unstable, so you are rewarded with a higher interest rate.
08:11 PM on 08/05/07 
Offline
User Info.
Chancetobe
Only the good die young
Chancetobe's Avatar
Cleveland/Upstate NY
Female - 26 Years Old
Nope, investments are spending on capital goods, like a building for your restaurant, or stove for the kitchen in the restaurant. Basically just things you need for your firm. This also includes only buying NEW houses.

No, I think it's anything that you can expect a return from.
08:15 PM on 08/05/07 
Offline
User Info.
Jess7286
No Avatar Selected
Westwood, CA
Female - 28 Years Old
The U.S. bond has virtually no risk, therefore very low interest rate. Eastern Europe governments are pretty unstable, so you are rewarded with a higher interest rate.

Uh....

I guess you could look at it like that, but the interest rate comparison depends on the demand for US dollars vs demand for international currency. It depends should be the answer.



NEWS, MUSIC & MORE
Search News
Release Dates
Exclusives
Best New Music
Articles
CONNECT
Submit News
Forums
Contests
Mobile Version
AP.net Logos
HIDDEN TREASURES
AbsolutePunk Podcast
Free Music
Sports Forum
Technology Forum
Recommendations
INFORMATION
Advertising
Contact Us
Copyright Policy
Terms of Service
Privacy Policy
FOLLOW
Twitter | Facebook | RSS
AP.net Podcast on iTunes
UnderTheGun
Purevolume
Chorus.fm | @jason_tate