The MPC, the MPS and the Keynesian spending multiplier

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Күн бұрын

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.

Пікірлер: 41

@mahiniqbalchowdhury6032 5 жыл бұрын

This was the best explanation of these topics I've ever heard. Thanks from Bangladesh.

@ifnocanheiniken 4 жыл бұрын

Thank you for clearing that cloud of confusion I had. Great video 👍🏽

@babitasalam8949 5 жыл бұрын

This is the best explanation!👍Thank you .

@SebiPoet 3 жыл бұрын

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

@mymoodsetter 3 жыл бұрын

Looks really simple in this video than reading about it. Thanks a lot.

@wuutchillll 4 жыл бұрын

I love the explanation!! thankyou soo much! now I understand more. God Bless!

@keitho35 5 жыл бұрын

Great video thank you for uploading

@lindacarlen6250 4 жыл бұрын

Finally I got it! THANKS👍👍👍

@weatherman40 3 жыл бұрын

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

@sandyexantus1179 3 жыл бұрын

thank you so much for this, it was well explained, better than my professor

@yasmintinwala6463 3 ай бұрын

Thank you Jason for this

@hariduttpanta4616 4 жыл бұрын

Thans a lot for your clear explanation easily.

@yildiz6720 4 жыл бұрын

This video helped me alooooot Thankssss🙏🏻

@josesitocastorena341 3 жыл бұрын

Thank you so much, you really helped me a lot.

@greypersona4771 Ай бұрын

thank you, this was very clear 🙏🏼

@arien_afrina3073 5 жыл бұрын

thankyouu so much , very helpful 👍

@MamoonaIqbal-lb3vi Жыл бұрын

thank you sooooo much its very helpfuland easy to understand

@studyiaswithvikashranjan8456 3 жыл бұрын

Good difination sir🙏🙏👍👍

@aliuzair2706 3 жыл бұрын

Thanks alot

@tatyanagrossett8002 2 жыл бұрын

Thank you man!!

@kiky.mp4 3 жыл бұрын

Thank you

@neugabi 3 жыл бұрын

You are the best

@MyteeBumbleBee 3 жыл бұрын

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

@ethancbaker2002 Жыл бұрын

So if the mpc increase so does the Keynesian Spending Multiplier????

@dantheman4011 4 жыл бұрын

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?

@allysttms 6 ай бұрын

you are my savior

@emypatrickm.7602 2 жыл бұрын

@YouCanStartLateAndFinish 3 жыл бұрын

Omg thank you so much

@Charlie-hp2oh Жыл бұрын

TOP

@realdvgarg 3 жыл бұрын

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

@nahumkemunto1003 7 ай бұрын

❤

@klam77 4 жыл бұрын

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.