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The Multiplier Effect, MPC, and MPS (AP Macroeconomics)

  Рет қаралды 582,538

Jacob Clifford

Jacob Clifford

12 жыл бұрын

In this video explain the multiplier effect and the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). Keep in mind that the MPC plus the MPC must equal one. This is becuase there are only two things you can do with new income. Either spedning it or save it.
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Пікірлер: 131
@michaelrhoads2213
@michaelrhoads2213 9 жыл бұрын
Seriously. My econ teacher mumbles and stumbles over a 3 hour period to teach these concepts. I take notes on my laptop, so I just open KZfaq and watch this channel in order to understand what she's talking about. You need a raise Mr. Clifford. Cheers.
@blake4194
@blake4194 9 жыл бұрын
It took my professor a full 55 min lecture to explain this concept. Ha. Thank you for summing this up in 2 mins.
@ketanjethwa5335
@ketanjethwa5335 12 жыл бұрын
If professors were as energetic and knowledgable as you are, I would have a 4.0
@poopsmeller373
@poopsmeller373 2 жыл бұрын
Germany?
@Name-ke6sf
@Name-ke6sf Жыл бұрын
@@poopsmeller373 what?
@alejandroduran8468
@alejandroduran8468 Жыл бұрын
excuses
@alexwood9941
@alexwood9941 5 жыл бұрын
in 90 seconds i understand the ideas of mps, mpc, and the multiplier. thank you, great explanation
@EmreCOKBERKIT-tb4ii
@EmreCOKBERKIT-tb4ii 18 күн бұрын
Hey Jacob, I know that it has been 12 years since you uploaded this video but I want to say that the explanation and simplicity is unmatched. The amount of dedication that this channel has is just mind-blowing. I am certain that you influence and benefit millions around the world. I am astonished, love from Türkiye.
@mr.gamewatch7547
@mr.gamewatch7547 8 жыл бұрын
My econ teacher didn't even mention the concept of MPS, but he put a question on our review which involved finding out the spending multiplier for an economy. Thanks for the help.
@JacobAClifford
@JacobAClifford 8 жыл бұрын
+Mr. Game & Watch You are welcome. Please subscribe and tell your friends
@ManonLc14
@ManonLc14 8 жыл бұрын
It always seems sooo damn easier when you explain those concepts! My teacher litteraly took 2 hours to explain this to the class. Thank you so much!
@TheRealG
@TheRealG 11 жыл бұрын
These videos are a blessing for a CPA student. I stopped studying from Becker, and now watch these videos.
@aiyana4508
@aiyana4508 4 жыл бұрын
im homeschooled and you have no idea how much this channel has helped me understand economics. econ isn't my best subject but I definitely have improved just by learning from you. thank you so much!
@amy_muk
@amy_muk 5 жыл бұрын
I read this in a lesson and still had no idea what I was doing until I watched this. Your help is greatly appreciated!
@hahajenlee
@hahajenlee 9 жыл бұрын
your channel is organized soooooooooooo well these lessons are being served to me on a silver platter thank u so much mr. clifford later when i graduate and make money i will make sure to send you some through the internet
@jaypatac7046
@jaypatac7046 5 жыл бұрын
thats true mate
@benturner8181
@benturner8181 4 жыл бұрын
Did you?
@kevwjin
@kevwjin 4 жыл бұрын
better keep true to your word! ;)
@himanshugupta9656
@himanshugupta9656 6 жыл бұрын
that's how a good teacher put concepts crystal clear in your head in just 2 mins
@smile4self
@smile4self Жыл бұрын
Its Sept, 2022... It's still one of the shortest and coolest video I've seen on MPS and MPC... Literarily the best...
@alyssacanales8610
@alyssacanales8610 10 жыл бұрын
Wow, your videos just made studying for my midterm so much better! Thanks!
@hctia
@hctia 6 жыл бұрын
Your videos make studying for my final exam so much easier! Thank you!
@christianbuffum-robbins8904
@christianbuffum-robbins8904 9 жыл бұрын
This was a HUGE help. Kinda wished I found this channel earlier.
@samuri2011
@samuri2011 12 жыл бұрын
you know whats funny?! the caption says "Please keep in mind that these clips are not designed to teach you the key concepts. These videos are a review tool to help you better understand what you learned in class" but these videos HAVE taught me the key concepts better than my teacher has once again !
@samiuddin6696
@samiuddin6696 2 жыл бұрын
in only two minutes you taught me lot. Thanks brother. stay joyful.
@buttsy923
@buttsy923 5 жыл бұрын
Jacob Clifford really is the goat at explaining econ
@MrJustlam130
@MrJustlam130 9 жыл бұрын
Best teacher ever
@gumihoalien1997
@gumihoalien1997 10 жыл бұрын
Thank you very much sir. Now I finally get it! My macroeconomics finals is tomorrow. It makes so much sense now. I didn't know it was this easy. o.O BTW...I just happened to be wearing an ACDC shirt now. What a coincidence!!! :)
@LemurInBlack
@LemurInBlack 10 жыл бұрын
you're a tool
@gumihoalien1997
@gumihoalien1997 10 жыл бұрын
LemurInBlack why am I a tool?
@LemurInBlack
@LemurInBlack 10 жыл бұрын
Gumiho Alien haha im kidding bro you know who I am? i sit behind you in macro lol! we are studying the same shit !
@gumihoalien1997
@gumihoalien1997 10 жыл бұрын
LemurInBlack lol OK let me get this straight.. there were 3 people that sat behind me, 2 girls & a guy. Which one is you?
@LemurInBlack
@LemurInBlack 10 жыл бұрын
Gumiho Alien just fucking with you i'm not actually in your classes
@asstolfo9106
@asstolfo9106 6 жыл бұрын
thank you so much for this, I've been dying over my economic equatons and this has really assisted me, thanks!
@CB7CatalystH22a
@CB7CatalystH22a 2 жыл бұрын
Short and Sweet. You killed this one!
@MrMarzzie
@MrMarzzie 11 жыл бұрын
Sometimes I get confused watching these videos other times they are spot on. This one was the later great job.
@uhhhd1157
@uhhhd1157 3 жыл бұрын
i'm a college macro student, but this video is a lifesaver. thank you
@Chris-fe1kx
@Chris-fe1kx 6 жыл бұрын
Thanks to you, I am able to talk about the multiplier in my macroecon final! Thank you!!!
@xoxjozettexox
@xoxjozettexox 10 жыл бұрын
Brilliant explanation. Thank you so much!
@chhayakankariya2748
@chhayakankariya2748 3 жыл бұрын
Perfect conceptual clearity👌
@andydoma
@andydoma 2 жыл бұрын
you are the best! I need that for the exam
@danielbae458
@danielbae458 8 жыл бұрын
Your belt is god tier. Thank you for the informative video good sir.
@amacr.1549
@amacr.1549 9 жыл бұрын
Thank you for these videos. You do a great job explaining everything.
@johnhaywood7362
@johnhaywood7362 Жыл бұрын
You just made this super simple. I appreciate it.
@bouncer6990
@bouncer6990 3 жыл бұрын
You are a legend. Thank you for helping me
@MemoriesAreForeverCo
@MemoriesAreForeverCo 8 жыл бұрын
Thank you Jonah Hill for helping me
@JacobAClifford
@JacobAClifford 8 жыл бұрын
+Ali Datoo Huh? Do I look like Jonah Hill?
@DjSeanTacos
@DjSeanTacos 7 жыл бұрын
Thank you Mark Cuban for helping me**
@jaypatac7046
@jaypatac7046 5 жыл бұрын
thank you so much sir! wew i never thought i would be able to understand it in just 2 mins !!! love your videos sir
@nickmortensen1785
@nickmortensen1785 5 жыл бұрын
I would kill for ANY of my professors to be this clear!
@ckysusanliu
@ckysusanliu 3 жыл бұрын
Amazing! just 2 minutes. Thank you so much!
@reviewsfromthe60025
@reviewsfromthe60025 7 жыл бұрын
Thanks Mr. Clifford, this was super helpful. By the way you look like Mark Cuban
@christoabbe
@christoabbe 2 жыл бұрын
you are literally the bestttt
@kOOshh16
@kOOshh16 8 жыл бұрын
Dude, thank you so much. I literally have my midterm exam and for the life of me, I could not understand this material.
@sammysosa3947
@sammysosa3947 6 жыл бұрын
thanks for the video! My professor doesn't cover the subjects at all and expects it on the test and homework. College life 😅
@smbdcry
@smbdcry 3 жыл бұрын
I’m just confused by the text book...the formula 1/(1-MPC) or here 1/MPS The ratio of 1 income vs saving = multiplier. What’s the reason of using this formula. How this formula came from..
@monsuralom6212
@monsuralom6212 8 жыл бұрын
Just came across your channel and thanks this is really helpful
@Shafique96
@Shafique96 9 жыл бұрын
i think i replayed the first 6 seconds of this video like 10 times lol that beat and then "HEY"
@WA-hq6ls
@WA-hq6ls 6 жыл бұрын
god, you are a legend, just saved my ass
@jjsk6012
@jjsk6012 4 жыл бұрын
I like my macro teacher but u r better 😵
@trinamanalo1891
@trinamanalo1891 7 жыл бұрын
THANK YOU, MR. CLIFFORD!!!!!!!!
@Dream1ng
@Dream1ng 12 жыл бұрын
you're my new favorite person.
@chrismrtz21
@chrismrtz21 9 жыл бұрын
Nice Belt! ACDC - Rock on
@user-zz8nt4tk4w
@user-zz8nt4tk4w 3 жыл бұрын
That's it!? Thank you so much!
@behaviorcorrector
@behaviorcorrector 2 жыл бұрын
Use the graph to answer the following questions. a) What is the value of the MPC? b) What is the value of the MPS? c) What is the value of the multiplier? d) What is the amount of unplanned investment at aggregate output of 300, 900, and 1,300?
@joseph_____
@joseph_____ 8 жыл бұрын
Shoutout to crash course
@sherbert1321
@sherbert1321 5 жыл бұрын
Thank you! This helped a lot!
@justinlee2643
@justinlee2643 10 жыл бұрын
What's the difference between the multiplier effect and money multipliers? One uses 1/MPS and the other one uses 1/reserve rate, but from what I understand, they do the same thing?
@akashnaik4555
@akashnaik4555 6 жыл бұрын
great sir all love from india
@thedailylunchbox-foodforth6307
@thedailylunchbox-foodforth6307 7 жыл бұрын
Intro is from the BiggerPockets podcast.
@dude101cool
@dude101cool 7 жыл бұрын
Thanks Mr Cuban
@checolvc
@checolvc 3 жыл бұрын
Mr Clifford do you or can you make videos about macro economic Analysis-- indept analysys.
@americangirdolllover
@americangirdolllover 8 жыл бұрын
Thanks this really helps
@TahirQasim
@TahirQasim 6 жыл бұрын
How can you determine the impact of a $1 Billion increase in spending?
@ichosethisnamefirst
@ichosethisnamefirst 9 жыл бұрын
nowadays people save their money by putting the money in the bank, and bank will eventually lend out the money keeping only reserve ratio. so how accurate is our spending multiplier through calculate ?
@IsJdog911
@IsJdog911 7 жыл бұрын
best explanation ever :)
@TrangHoang-nk7we
@TrangHoang-nk7we 7 жыл бұрын
As Multiplier= 1/MPS and also Multiplier= Change in Income/ Change in spending, could you please help me to clear up the relationship between these two formula???
@rigoguzman1138
@rigoguzman1138 10 жыл бұрын
Great Video but how did you get 1 over 1/5?? am lost there
@gloriakare1957
@gloriakare1957 10 жыл бұрын
well 0.2 is simply 2/10 in fraction form once you simplify, you get 1/5
@MrSnrKnight
@MrSnrKnight 10 жыл бұрын
AC DC belt you are a donnnyyyyy!
@juliejackson7488
@juliejackson7488 6 жыл бұрын
I am trying to find a video on the calculating the multiplier with proportional tax. Have you made one? All the videos I've found so far are not really helping me.
@jorgeportuhondo2788
@jorgeportuhondo2788 5 жыл бұрын
got a econ final tomorrow, get ready for your views to go up a little bit
@empty_dayofthetech
@empty_dayofthetech 3 жыл бұрын
I assume that the savings multiplier is the same formula?
@vishnukoli9527
@vishnukoli9527 4 жыл бұрын
At 0:49 it is not 'since you can only consume or spend' it should be 'since you only consume or save' i guess?
@rickstratton9733
@rickstratton9733 4 жыл бұрын
Why does one over the mps = the multiplier? Isn't the multiplier based on the amount spent not saved?
@bhuvand7568
@bhuvand7568 4 жыл бұрын
My teacher doesn’t even teach she just reads what’s on in the extract
@asareregina6517
@asareregina6517 3 жыл бұрын
What does it mean if a multiplier in a place is 1.81?
@bellabozied7303
@bellabozied7303 4 жыл бұрын
#HernandezMacroGang
@HDWoodMoviesDotCom
@HDWoodMoviesDotCom 7 жыл бұрын
can the multiplier have a zero value. Is that possible ?
@JacobAClifford
@JacobAClifford 7 жыл бұрын
Sure, if people save everything then the multiplier would be zero
@HDWoodMoviesDotCom
@HDWoodMoviesDotCom 7 жыл бұрын
in that case MPS=1 but still the value of Multiplier will be 1 as k=1/mps so if mps=1 k=1 than how zero ?
@arjun01235
@arjun01235 7 жыл бұрын
but it never happen. may i right
@sarahalkahery1061
@sarahalkahery1061 7 жыл бұрын
thank you!
@MrTugwit
@MrTugwit 11 жыл бұрын
Yt = C+I+NX+G shows that if you add $1 to G, total income Yt increases only $1. So the change in income, over the change in spending is 1/1 = 1. There is no multiplier.
@eamonnarasaratnam7213
@eamonnarasaratnam7213 5 жыл бұрын
thank you.
@studycircle8234
@studycircle8234 6 жыл бұрын
Sir cbse board exam 2018 ka set paper no 3 ka questions no 20 ka solution ker video bana do
@Kkevsterrr
@Kkevsterrr 11 жыл бұрын
What if MPC is 1? MPS would be 0, and the spending multiplier would be indeterminate.
@passgyalsiakam
@passgyalsiakam 7 жыл бұрын
you da man
@divina1399
@divina1399 8 жыл бұрын
I love your explanation, But could you please do not explain that fast?. Thanks
@yigithanbal5790
@yigithanbal5790 2 жыл бұрын
How is this example the EXACT answer to Pearson myEconLab ;-;
@Itsvijaymaurya
@Itsvijaymaurya 7 жыл бұрын
good
@revenant1092
@revenant1092 4 жыл бұрын
Where the 1/5 came from?
@monsuralom6212
@monsuralom6212 8 жыл бұрын
Btw can anyone like explain what exactly is the spending multiplier?
@niharikanangia3908
@niharikanangia3908 10 жыл бұрын
lucid explanation
@TheUsmc7211
@TheUsmc7211 12 жыл бұрын
If my professor spoke english I would have a 4.0 and money to go with it.
@clydeng87
@clydeng87 11 жыл бұрын
thx
@quentinkaramitsos6446
@quentinkaramitsos6446 8 жыл бұрын
An economics teacher with an AcDc belt buckle? Somethings not quite right
@trent20817
@trent20817 11 жыл бұрын
who has an AP exam in the morning?
@alinatajammal3519
@alinatajammal3519 3 жыл бұрын
What's a entry 😂😎
@MrTugwit
@MrTugwit 11 жыл бұрын
mpc for an increment of investment is zero. If mpc is b, then the "multiplier" for an increment of investment is 1/(1-b) = 1/(1-0) = 1. mpc for an increment of consumption requires the 1/b "multiplier". mpc for an increment of consumption is 1. 1/b = 1/1 = 1. If you use 1/(1-b) for consumption, you get the 1/0 nonsense you pointed out. Keynes' "multiplier" is mathematical nonsense.
@hannahjoycheng
@hannahjoycheng 6 жыл бұрын
ilysm
@anthonydai2496
@anthonydai2496 8 жыл бұрын
Sorry! At 0:48, the subtitle "you can only consume or spend" is really funny, you must be a playboy! (I think you want to state "consume or save") :)
@ZeroDuffy
@ZeroDuffy 8 жыл бұрын
AP MACRO JUMP CUTS EDITION!!!!!!
@xkaili
@xkaili 10 жыл бұрын
ACDC! :P
@chezloncox2197
@chezloncox2197 5 жыл бұрын
"Your marginal prospenitilytur"
@reemasehgal6331
@reemasehgal6331 7 жыл бұрын
Wowoowowwowwow this is so amazing Thanks so much. You look hot lol
@shamsokhan5051
@shamsokhan5051 5 жыл бұрын
macro analysis econmic10813 in hidi
@tamemnesar8318
@tamemnesar8318 7 жыл бұрын
How 1/2 equals 1/1/5 I don't get it ?
@stevetpham
@stevetpham 6 жыл бұрын
I find this formula easier to apply: First, multiple both numerator and denominator by 10 -- to get rid of the decimal number. 1 / .2 = 10 ( 1 / .2) = 10 / 2 = 5 now, isn't that easier ???? BTW: I really enjoy your videos -- really helpful -- thank you very much!!!!
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