Macro 4.2- Monetary Policy and Aggregate Demand

Mr. Clifford explains how to connect the supply and demand for money to aggregate demand and supply.

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15 Responses to “Macro 4.2- Monetary Policy and Aggregate Demand” Subscribe

  1. funkymonk816 June 19, 2013 at 8:10 am #

    thank you this is a perfect review for my macro final

  2. Seth Suwignjo June 19, 2013 at 8:52 am #

    Sir you are saying that money supply will affect the interest rate but i thought that interest rate is the one which will affect the money supply, because when the government decrease the interest rate people will not likely to save causing more money supply in the system.. or am i wrong? everything after that makes sense though:)

  3. inuyashaobsessed101 June 19, 2013 at 9:20 am #

    thank you Mr. Clifford <3333

  4. Hyobin Lee June 19, 2013 at 9:20 am #

    I have been self studying the AP exam (which is two days from now :( …) and ur videos are just amazing, thank you so much ahhhhh ur saving my life.

  5. Mitch Connor June 19, 2013 at 9:21 am #

    I love you

  6. Paul Whitman June 19, 2013 at 10:14 am #

    This is explained by the investment demand curve.
    The higher the interest rates, the less companies want to invest. Companies need to borrow money to invest, and if interest rates are high only investments returning the highest rate of return will get funded. As the interest rate lowers, more investments become profitable which means they get funded, which increases aggregate investment.

  7. guhhuh008 June 19, 2013 at 10:57 am #

    Can you explain exactly why a decrease in interest rates would cause an increase in investment, I thought at lower interest rates companies want to have greater cash reserves because of the condition of the market. This is Quantitative easing. The jump from interest rates decreasing to investment increasing doesn’t take into account the reason the fed wants to increase the money supply or the psychology involved with businesses. All this does is cause inflation by an increase in the money sup.

  8. Michael Holman June 19, 2013 at 11:47 am #

    I have an exam in 7 hours, you’ve taught me more than my econ teacher all year in about 45 minutes!

  9. Saeed Al-Kindi June 19, 2013 at 12:02 pm #

    AD is increased by increasing in Investment, that’s cool, but, wouldn’t Investment as for buying more capital would also increase the AS, which would leave the price level unchanged!!?

  10. Nicholas Debany June 19, 2013 at 12:10 pm #

    Wouldn’t lower taxes (payroll, etc) also spur more investment? This wasn’t addressed in the fiscal policy video.

  11. aklei1 June 19, 2013 at 1:07 pm #

    I took AP Macro first sem. and forgot nearly everything for the ap test, but you’re videos are a life saver

  12. Diego Habib June 19, 2013 at 1:43 pm #

    Congratulations!!! You taught me the entire chapter in less than 30 minutes!

  13. A4171GK12H June 19, 2013 at 1:56 pm #

    PLEASE come teach my class!!! You are amazing!!!

  14. jayrobsah June 19, 2013 at 2:50 pm #

    please use keynsian for one video

  15. MyMrwrestling June 19, 2013 at 3:28 pm #

    should use kensyan diagram
    which is wat we use in the uk

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