| Title | : | Money supply and demand impacting interest rates | Macroeconomics | Khan Academy |
| Lasting | : | 7.34 |
| Date of publication | : | |
| Views | : | 354 rb |
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Is the interest rate here real interest rate or nominal interest rate? Comment from : Sindy Wang |
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Sal, What happens when the money supply and intrest rates go up at the same time? This is what's happening now Comment from : chuck50a |
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RENTING MONEY I love it!!!!! Comment from : messi jr |
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Why is money supply not perfectly inelastic? Comment from : Nga Le |
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This is amazing Awesome Comment from : Shuai Yang |
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Well why on earth is the Fed only lending the government 6 or 7 trillion? Why not 500 trillion? Comment from : BÍ UlaÍmh |
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amazing video thanks Comment from : B a l a n c e |
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Nice explanation!! Comment from : Elisaul Diaz |
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Best explanation thus far 🙌🏽 Comment from : Thandeka Jwara |
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Central Branks?-lmao jk great vid Comment from : Umer Rehman |
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Thanks! Comment from : Andrea Nicole |
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Just to clarify In the second curvebrPeople are saving less, thus supply drops That’s clearbrHowever I don’t understand why as you said, when people save less, they borrow more? (And push up demand for money) brbrHow does this work in real life? brAs I think, if I save less, it means I am using more money for consumption and thus I need for borrow less? Comment from : John Lin |
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So if the interest and money supply is fixed what does an increase in government expenditure by selling bonds to the public do? Comment from : rojamillerover |
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Ok The end of this video is the most important part Finally I understood why we deal with interest rate as "the price of money" That's because if supply for demand changes, the price of this must change too, in this case, interest ratebrSo, about interest rate is enough understand what affect supply and demand for money We are specifically talking aboug big consumers of money: governments, banks, consumer's sentiment, ? something more?brThat's what I learnt watching this video Thank you so much! Congratulations😆 Comment from : Raphael de Oliveira |
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Q axis; wouldn't that be $ 'available' to lend? Comment from : T D |
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Hi, could you please explain why in the 2nd supply & demand scenario, you took the demand curve to the right as if it was increasing but you said that since saving is going down people are gonna borrow less money? Comment from : Simon Vellin |
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Sooo helpful Comment from : Naa Akuokor |
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Central branks Comment from : Daniel Nuttall |
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Brilliant Bravo Bravisimo Comment from : Letlhogonolo Segoe |
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Thank you Khan's academy Comment from : Kalyssa Susan Sookram |
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why didn't you use the usual vertical curve for the money supply? Comment from : Camille Estonio |
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if consumer borrowing is less, how can that bring demand up? Your second graph is a bit confusing Can you clarify that? Comment from : Medicine Herbal |
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thanks it was really helpful (: Comment from : Sam |
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JazakAllah Comment from : Sana Hasan |
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For each of the following scenarios, tell a story and predict the effects on the equilibrium levels of aggregate output (y) and the interest rate (r) :brB During the summer of 2003, Congress passed and President George W Bush signed the third tax cut in 3 years Many of the tax cuts took effect in 2005 Assume that the Fed holds Ms fixed pdf Comment from : Kimsrengpajero Sreang |
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For the 2nd graph, I get that the supply of money will decrease (shift left) and increase interest rates, but how would that increase in rate INCREASE demand of money? People will borrow less, yes - and so interest rates should reflect that by DECREASING (as people aren't demanding loans/money as much)brbrPls halp Comment from : Nikolai |
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Nice !brAmen ! Comment from : grrrrrr911 |
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Very helpful! Thank you! Comment from : Anum Hussain |
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for the 2374687634827643th time, Khan Academy saved my life :) Comment from : Fernando Klein Rocha |
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i think "less" should have been "more" they save less cos they need to spend it, and MORE borrowing could help with that Comment from : boson by boson |
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whats a central brank? jk thanks for the vid it helped ;)
Comment from : Todd Aillon |
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Consumer savings goes less when there is inflation In such case well to do consumers will save less while those on the borderline will have to borrow now to meet their needs So we will have an aggregate effect of middle class saving less and poor borrowing more HTH Comment from : i am kat |
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Thank you very much, explains really clearly! Comment from : rafi m |
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I understand where you're coming from, but I don't think you're quite getting what PresAndrewJackson is saying He's simply stating from a macro level, if the only money entering the system is debt-based (ie interest bearing), assuming there is no foreign trade, any money in circulation is simply the principal of a loan So how do you pay interest? That's the problem with the federal reserve system What PAJ is calling for is debt-free, government printed money, not debt free banking Comment from : Brendan Nadnerb |
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That's where you're wrong If an economy is burdened with national debt and compounded interest, taxes are going to exponentially increase, leaving less spending money for the taxpayer If you want to keep interest payments low, the debt has to be low, ie you need to increase productivity and trade and increase your real GDP But you're going to constantly be borrowing more money (with interest) to keep up with the demand for it; see the problem? Comment from : Brendan Nadnerb |
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@KaninoWorldIsThis When consumers save less, it's usually for the intention of using that would-have-been-saved money to buy goods Or, instead of saving money, they decide to spend it on consumer goods, shifting the demand curve outwards Comment from : ITogoPogoB |
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if consumer savings goes down, why would the demand curve shift up? Comment from : KaninoWorldIsThis |
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macro at its best nice ass video Comment from : G TV |
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@swedishorient Greed ?? Comment from : spirituelconnexion |
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whenever the government interferes it just effs up the economy! Comment from : jasonc_tutorials |
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is there anything this guy doesn't know?? Comment from : swedishorient |
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Branks Comment from : xAL3Xx |
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@baydood510 yes to an extent they would be forced to raise the interest rate if inflation increases Comment from : BCNLiving |
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@WhiteThunderCoch the govt have a monopoly on currency? The fed has a monopoly, and they're private not govt affiliated Comment from : crypticnivek |
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I thought the fed artificially controls the interest rate, regardless of market conditions Comment from : Salliance |
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