Macroeconomics Unit 4 COMPLETE Summary - Financial Markets

Macroeconomics Unit 4 COMPLETE Summary - Financial Markets - 2023 Update

Рет қаралды 52,843

6 ай бұрын

This video covers all of the key points of Unit 4 from the AP Macroeconomics Course Exam Description (CED). Financial Assets, Fisher Formula, Bank Balance Sheets, Money Multiplier, Monetary Policy, Money Market, Ample Reserves Market and Loanable Funds.
For more help with unit four, there are content reviews, review games, and practice exercises for you at: www.reviewecon.com/ap-macroec...
To support this channel, like and subscribe, then purchase the Total Review Booklet from ReviewEcon.com: www.reviewecon.com/total-revi...
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Note: Topics are out of order because this is the oder in which they are covered in the ReviewEcon.com Total Review Booklet.
Note: AP©, Advanced Placement Program©, and College Board© are registered trademarks of the College Board, which was not involved in the production of, and does not endorse, this material.

Пікірлер: 102

@harshpatel7174 24 күн бұрын

Ap exam in a hour , IM COOOOKED

@ReviewEcon 24 күн бұрын

Relax and get cookin' instead! Good luck!

@mathisoliver4597 2 ай бұрын

Yeah im cooked on my exam tmrw

@ReviewEcon 2 ай бұрын

Oof! I wish you the best of luck! You got this!

@pjams Ай бұрын

REAL

@jackym05 5 күн бұрын

REAL

@Zion122 6 ай бұрын

Thank you for saving my young life with these videos.

@ReviewEcon 6 ай бұрын

I hope your life didn't actually depend on it! 😅 But I'm happy to help! Good luck with your exams!

@imnottellinudontwannaknow3188 24 күн бұрын

Dude you came in clutch for my micro exam, so im definitely gonna have to use these videos for my macro exam!!! Best econ teacher on the Internet for sure

@ReviewEcon 24 күн бұрын

Thank you very much! Good luck on Macro!

@thatoneguy8909 Ай бұрын

Currently studying for the AP exam really appreciate the videos!

@ReviewEcon Ай бұрын

Awesome! Good luck on your exams! 🤘😎

@juanandrescavallin6107 5 ай бұрын

Awesome video. This helped me so much with my test on this unit. Thank you so much!

@ReviewEcon 5 ай бұрын

Awesome! Good luck with your exams!

@violet201 12 күн бұрын

Watching this right before my makeup macro AP exam, such a life saver thank you so much!!!

@ReviewEcon 12 күн бұрын

You're very welcome! Good luck!

@nitya.donthi 25 күн бұрын

thank you so much mr reed! very helpful video!!!

@ReviewEcon 25 күн бұрын

You're very welcome!

@bootlegshakira 5 ай бұрын

it took me halfway thru the video to realize there were 2 different guys. 💀 thx for saving my midterm grade :D

@ReviewEcon 5 ай бұрын

Just one guy at ReviewEcon. But the CED was changed so I re-recorded some parts. Hair and facial hair are a bit different though. 😅

@Insanegameelaine 2 ай бұрын

@@ReviewEconare you from fortnite

@ReviewEcon 2 ай бұрын

@@Insanegameelaine played before, but not recently.

@saniyasran 5 ай бұрын

Thank you so much!

@ReviewEcon 5 ай бұрын

You're very welcome!

@OliviaXu-zy8dm Ай бұрын

Very clear video on these concepts! I learn many things I didn’t know or understand before ❤ thanks for your video. Hope I can have good score on coming AP test 🎉😊

@ReviewEcon Ай бұрын

You're very welcome! Good luck on your exam!

@GG.2431 5 ай бұрын

Awesome video 🔥🔥🔥

@ReviewEcon 5 ай бұрын

Thank you! Good luck with your studies!

@user86177 25 күн бұрын

the exam is tomorrow and im just starting unit 4 am i cooked🙏

@ReviewEcon 25 күн бұрын

If you understand 1-4 well, I believe you can totally make it. Watch my unit 5 and 6 play list, play the games on ReviewEcon and make sure you can draw the Phillips curve and ForEx market. Good luck!

@KhaderMatarieh 2 ай бұрын

Great work and very clear presenting

@ReviewEcon 2 ай бұрын

Thank you! Good luck on your exams!

@gori6577 Ай бұрын

can i call you my real teacher now (my school teacher just puts you on as the lesson)

@ReviewEcon Ай бұрын

Sure! 😄 Good luck on your exams!

@architg4164 25 күн бұрын

do we use the money market graph in a market with ample reserves as well? Becuase if there is ample reserves would the Money supplied be vertical or do we only use that when there are scarce reserves?

@ReviewEcon 25 күн бұрын

Monetary policy with ample reserves will be the reserves market. But limited reserves could be the money market or reserves market. Good luck!

@gojeed 2 ай бұрын

youre a lifesaver

@ReviewEcon 2 ай бұрын

Glad to help! Good luck with your exams!

@delicatedolly 2 ай бұрын

thank you soooo much i have this exam tomorrow for ap macro and all my friends said it was so hard 😞your videos are always the best

@ReviewEcon 2 ай бұрын

You got this! Good luck tomorrow! 🤘😎

@jeremyscott9860 25 күн бұрын

Who studying for AP Exam Friday

@ReviewEcon 25 күн бұрын

Good luck!

@Mo-ev3pk 6 ай бұрын

Thank you ❤

@ReviewEcon 6 ай бұрын

You're very welcome! Good luck with your studies!

@christianwood5510 24 күн бұрын

Appreciate you brother

@ReviewEcon 24 күн бұрын

You're very welcome! Good luck tomorrow!

@jerrywang2991 24 күн бұрын

Very helpful videos! Just one question: At 4:17, shouldn't the nominal = real + inflation?

@navarrettte8165 24 күн бұрын

Isn't real = nominal plus inflation because real accounts for inflation, rather nominal doesn't account for inflation

@ReviewEcon 24 күн бұрын

Oh wow! Big typo. I'll have to fix that. Good catch!

@0zniugnep904 5 ай бұрын

very awesome video. love from sd

@ReviewEcon 5 ай бұрын

Thank you! Good luck on your exams!

@chococlair2035 25 күн бұрын

Thank you always for your amazing videos! I'd like to ask a question, though -- it's said here that bond prices and interest rates have an inverse relationship, presumably because people seek higher rates of return and will desire bonds less when interest rates are higher. But if that is the case, why is it that in the loanable funds market, when real interest rate increases, gross investment decreases? Do people desire higher interest rates or not?

@ReviewEcon 25 күн бұрын

"Gross investment" or ”investment" is purchases of physical capital by businesses. These businesses pay the interest, so they buy more physical capital when interest rates are low and less physical capital when it just straights or high. This gross investment is the demand curve in the loanable Funds market. Purchasers of bonds, are the suppliers in the loanable funds market. In unit 6, we refer to foreign investment. Foreign investors are essentially people in other countries who save their money in our bond markets. They are suppliers in loanable funds market as they purchase bonds. I hope that helps!

@bimidairo1562 20 күн бұрын

At 13:52 , you said all three of these tools (Open Market operations, discount rate, and reserve requirement) were used to target the policy rate, but I thought only the tools in an ample reserve system would be used to target the policy rate since banks with ample reserves use the reserve market graph, which has the policy rates. How can the tools of a scare reserve system be used to target policy rate if it's not working on a graph with policy rates? Wouldn't it just target interest rates since scarce reserve systems are working on the money market? I hope that question made sense lol

@ReviewEcon 20 күн бұрын

That is a description of scarce reserves monetary policy. I discuss ample reserves in the video too. 😄

@ReviewEcon 20 күн бұрын

The policy rate is the federal funds rate in the US. Before we had ample reserves, the Fed used these tools to target the policy rate in the money market.

@bimidairo1562 20 күн бұрын

@@ReviewEcon ohhh ok that makes sense! thank u and great video :D

@myplace571 2 ай бұрын

one question, do i use the reserve market graph only for ample reserves? or monetary policy in general?

@myplace571 2 ай бұрын

i guess it has to do with where supply curve interects? is that correct?

@ReviewEcon 2 ай бұрын

That is correct. You can show limited reserves on the reserves market by having the supply intersect the demand on the downward sloping portion. But so far, released AP questions I've seen only deal with the reserves market when there are ample reserves.

@myplace571 2 ай бұрын

understood, as always thank youu@@ReviewEcon

@athenaeyzaguirre5716 5 ай бұрын

Thank you so much I actually understand this now!! Didn’t think it was possible

@ReviewEcon 5 ай бұрын

You're very welcome! Good luck with your exams!

@jaytep5647 Ай бұрын

okay so my teacher taught loanable funds market very differently 19:30 my teacher taught it as just demand for loanable funds and supply for loanable funds. shifters of demand are changes in investment spending (due to changes in perceived business opportunities) and changes in government borrowing. i don't think you mentioned changes in government borrowing. shifters of supply are changes in private savings or changes in capital inflow. 21:04 does crowding out just refer to the case where government deficit increases?

@ReviewEcon Ай бұрын

Your teacher is in line with the AP exam. There are lots of ways to do Loanable funds, and I do my best to not outright contradict any of them. To ensure you understand, play the loanable funds game on ReviewEcon.com. The only thing your really missing for the shifters is foreign investment (really foreign savings in domestic banks). Tat is a supply shifter. Yes, crowding out is about changes in the deficit (government borrowing). Increases in the deficit cause higher interest rates in the LF market and decreases in the deficit cause lower interest rates in the loanable funds market.

@connorwelch855 2 ай бұрын

The goat 🙏

@ReviewEcon 2 ай бұрын

Thank you! 😄 Good luck on your exams!

@hypersonic6649 2 ай бұрын

Thanks!

@ReviewEcon 2 ай бұрын

You're very welcome! Good luck with your exams!

@jaytep5647 Ай бұрын

10:39 in this context, interest is the money that consumers pay to banks. so if those interest rates are higher, people demand less money from the banks, and if those rates are lower, then people demand more money. is this logic correct? i feel like im mixing this up with the loanable funds market

@ReviewEcon Ай бұрын

Actually in the money market, the interest rate (in regards to the demand curve) is the money people earn (not pay). When we hold our wealth as cash, (money), we lose the nominal interest rate we could have earned if we purchased a bond. When interest rates are high, people will hold (demand) less money because they would rather buy interest bearing assets. When interest rates are low people would rather hold (demand) money because the liquidity money provides is better than the small amount of interest they could earn. Side note. All interest rates are connected, so this is also the rate people pay when borrowing. But the demand for money isn't about borrowing. It is about holding wealth as cash for transactions or as valuable assets. I hope that helps!

@AprilLi-uv4qm 2 ай бұрын

Really helpful🤧🤧🤧🤧🤧🤧thank you so much❤

@ReviewEcon 2 ай бұрын

You're very welcome! Good luck with your exams!

@extrememachine3293 2 ай бұрын

4.5 and up is very confusing to me test tomorow 😢

@ReviewEcon 2 ай бұрын

Unit 4 is definitely the most difficult unit in macro. Good luck tomorrow!!

@extrememachine3293 2 ай бұрын

@@ReviewEcon This video definelty improved my grade thanks and will be coming back for future units

@AviOza 2 ай бұрын

My Goat

@ReviewEcon 2 ай бұрын

You're too kind! Good luck on your exams!

@andrew17498 25 күн бұрын

mr reed the goat ❤🐐

@ReviewEcon 25 күн бұрын

Thank you! Good luck on your exam!

@andrew17498 25 күн бұрын

@@ReviewEconthank you 🙏

@jaytep5647 Ай бұрын

9:28 i'm a bit confused on what the difference is between new loans and new money. my teacher just taught that this value would be the change in money supply

@ReviewEcon Ай бұрын

New Loans are always excess reserves x the money multiplier. New money can be bigger (adding the origin amount back in) if it was new money (like if the central bank buys bonds on the open market). This game may help you understand further. Good luck! www.reviewecon.com/games-activities/money-multiplier