The MPC, the MPS and the Keynesian spending multiplier
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- čas přidán 7. 06. 2024
- We know that an increase in spending will lead to an increase in GDP. But did you know that when one component of AD increases, it will lead to a larger overall increase in AD across the economy? This video introduces the marginal propensities to consume and save and the Keynesian spending multiplier, which allows us to estimate the degree by which a particular change in spending will impact overall GDP in an economy.
- Jak na to + styl
This was the best explanation of these topics I've ever heard. Thanks from Bangladesh.
Thank you for clearing that cloud of confusion I had. Great video 👍🏽
This is the best explanation!👍Thank you .
yo this is hands down the clearest video I found on this, I gotta quiz tomorrow and this is godsend.
How's the quiz go
Looks really simple in this video than reading about it. Thanks a lot.
I love the explanation!! thankyou soo much! now I understand more. God Bless!
Great video thank you for uploading
Finally I got it! THANKS👍👍👍
and in 10 minutes I got it all well ..thanks for making me understand the multiplier and what it means
I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy)
I really need the answer of this
thank you, this was very clear 🙏🏼
Thank you Jason for this
thank you so much for this, it was well explained, better than my professor
Thans a lot for your clear explanation easily.
Thank you so much, you really helped me a lot.
This video helped me alooooot
Thankssss🙏🏻
thank you sooooo much its very helpfuland easy
to understand
thankyouu so much , very helpful 👍
Thank you man!!
Doesnt saving cause GDP to expand with a multiplier, or does it only cause Money supply to increase? Banks increase money in circulation which therefore increases GDP I would assume?
Thanks alot
Good difination sir🙏🙏👍👍
So if the mpc increase so does the Keynesian Spending Multiplier????
Your presentation was like a breath of fresh air amongst so many confusing, self-serving videos! My question to you is: how would you calculate the consumption value for the $1,100 income if you only had the initial $700 consumption from which to start work?
I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy)
I really need the answer of this
Thank you
I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy)
I really need the answer of this
You are the best
you are my savior
Omg thank you so much
but if we're finding 'k' using the MPS, shouldn't we do [1/(MPS + MPT + MPM)]?
I think this is a simplified version. But yes, that is correct.
@@theibphysicsandmathsgod1000
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Why do you ignore the Business sector in this analysis? For example, they always tell us the economy is three parts: Y=C+I+G. So you cover the "C" in this video but miss the business savings, ie "profits", no? Companies "spend" on cost of goods sold which come from still other companies and so on and so forth and each company "saves" it's profits....so the profit rate is also like MPS, and your analysis completely IGNORES this, no?
What is saved in financial institutions comes back to the simple model in form of an injection (investment) which is made by the private sector depending on the consumption behavior (MPC) of an economy.
Hmm
You are the best mwalimu🥹
This is the best explanation!👍Thank you .