The MPC, the MPS and the Keynesian spending multiplier
Тәжірибелік нұсқаулар және стиль
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.
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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 .
Looks really simple in this video than reading about it. Thanks a lot.
Great video thank you for uploading
I love the explanation!! thankyou soo much! now I understand more. God Bless!
yo this is hands down the clearest video I found on this, I gotta quiz tomorrow and this is godsend.
@xWilled
3 ай бұрын
How's the quiz go
Finally I got it! THANKS👍👍👍
Thank you Jason for this
thank you so much for this, it was well explained, better than my professor
thank you, this was very clear 🙏🏼
Thans a lot for your clear explanation easily.
and in 10 minutes I got it all well ..thanks for making me understand the multiplier and what it means
@emypatrickm.7602
2 жыл бұрын
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 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?
So if the mpc increase so does the Keynesian Spending Multiplier????
Thanks alot
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
Good difination sir🙏🙏👍👍
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?
@emypatrickm.7602
2 жыл бұрын
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)]?
@theibphysicsandmathsgod1000
Жыл бұрын
I think this is a simplified version. But yes, that is correct.
@realdvgarg
Жыл бұрын
@@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?
@learnecon1539
4 жыл бұрын
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 .