Ironworks Gaming Forum - View Single Post - Econimics questions again. HELP me people :p

Lady Blue03 · 05-19-2004, 07:28 PM

It is imperative that I understand these two questions, because they are questions on the final that I am doing right at this moment-

First:
5. Suppose you have $20,000 to invest in a bond; you then hear a rumor that that the fed is about to lower the discount rate dramatically. Would you rather invest now or wait until it goes down? Explain fully.

Now I know you're supposed to wait to deposit until they drop, but I can't remember why [img]tongue.gif[/img]

7. Under what circumstances can a budget deficit, not immediately financed by printing new money, still be inflationary? Explain fully.

And thats the other-which im drawing a blank on. I need these answers, or at least understand where the questions coming from. There are only 12 ?s on the exam after all [img]tongue.gif[/img]

I've noticed about 0% of the people here are economically savvy, so I hope I'm not wasting my time [img]tongue.gif[/img]

HUGE thanks to anyone who can help

05-19-2004, 07:28 PM	#1
Lady Blue03 Xanathar Thieves Guild Join Date: January 18, 2002 Age: 38 Posts: 4,557	It is imperative that I understand these two questions, because they are questions on the final that I am doing right at this moment- First: 5. Suppose you have $20,000 to invest in a bond; you then hear a rumor that that the fed is about to lower the discount rate dramatically. Would you rather invest now or wait until it goes down? Explain fully. Now I know you're supposed to wait to deposit until they drop, but I can't remember why [img]tongue.gif[/img] 7. Under what circumstances can a budget deficit, not immediately financed by printing new money, still be inflationary? Explain fully. And thats the other-which im drawing a blank on. I need these answers, or at least understand where the questions coming from. There are only 12 ?s on the exam after all [img]tongue.gif[/img] I've noticed about 0% of the people here are economically savvy, so I hope I'm not wasting my time [img]tongue.gif[/img] HUGE thanks to anyone who can help __________________ Yep I'm still lurking!