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Short Answers - Savings and Economic Growth
 
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​A high gross domestic saving rate usually indicates a country's high potential to invest in capital. State two factors that affect the gross savings rate for a country. Explain how a rise in gross savings might not necessarily lead to a rise in a country’s growth rate.
Views: 2278 tutor2u
💰 How is Wealth Created | Savings and Investments
 
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How is wealth created? Saving and investing is the key to personal wealth as well as the economic growth. Learn Austrian Economics in a fun way! LINKS SUPPORT our project: http://bit.ly/2fgJR9e Visit our website: http://econclips.com/ Like our Facebook page: http://bit.ly/1XoU4QV Subscribe to our YouTube channel: http://bit.ly/1PrEhxG ★★★★★★★★★★★★★★★★★★★★★★★★★★ Music on CC license: Kevin MacLeod: Home Base Groove – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/...) Źródło: http://incompetech.com/music/royalty-... Wykonawca: http://incompetech.com/ Kevin MacLeod: Cambodian Odyssey – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/…) Źródło: http://incompetech.com/music/royalty-… Wykonawca: http://incompetech.com/ Audionautix: TV Drama Version 1 – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/…) Wykonawca: http://audionautix.com/ Audionautix: Yeah – na licencji Creative Commons Attribution (https://creativecommons.org/licenses/…) Wykonawca: http://audionautix.com/ ★★★★★★★★★★★★★★★★★★★★★★★★★★ Econ Clips is an economic blog. Our objetive is teaching economics through easy to watch animated films. We talk about variety of subjects such as economy, finance, money, investing, monetary systems, financial markets, financial institutions, cental banks and so on. With us You can learn how to acquire wealth and make good financial decisions. How to be better at managing your personal finance. How to avoid a Ponzi Scheme and other financial frauds or fall into a credit trap. If You want to know how the economy really works, how to understand and protect yourself from inflation or economic collapse - join us on econclips.com. Learn Austrian Economics in a fun way!
Views: 1091541 EconClips
National savings and investment | Financial sector | AP Macroeconomics | Khan Academy
 
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The market for loanable funds brings savers and borrowers together. We can also represent the same idea using a mathematical model. In this video, learn about the savings and investment identity. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything https://www.youtube.com/subscription_center?add_user=khanacademy. View more lessons or practice this subject at http://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/the-market-for-loanable-funds/v/national-savings-and-investment-ap-macroeconomics-khan-academy?utm_source=youtube&utm_medium=desc&utm_campaign=apmacroeconomics AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us! Khan Academy is a nonprofit organization with the mission of providing a free, world-class education for anyone, anywhere. We offer quizzes, questions, instructional videos, and articles on a range of academic subjects, including math, biology, chemistry, physics, history, economics, finance, grammar, preschool learning, and more. We provide teachers with tools and data so they can help their students develop the skills, habits, and mindsets for success in school and beyond. Khan Academy has been translated into dozens of languages, and 15 million people around the globe learn on Khan Academy every month. As a 501(c)(3) nonprofit organization, we would love your help! Donate or volunteer today! Donate here: https://www.khanacademy.org/donate?utm_source=youtube&utm_medium=desc Volunteer here: https://www.khanacademy.org/contribute?utm_source=youtube&utm_medium=desc
Views: 11849 Khan Academy
Investment and consumption | GDP: Measuring national income | Macroeconomics | Khan Academy
 
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Difference between every day and economic notions of investment and consumption Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/income-and-expenditure-views-of-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/circular-econ-gdp-tutorial/v/more-on-final-and-intermediate-gdp-contributions?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 312497 Khan Academy
Y1/IB 20) Savings and Aggregate Demand - Determinants of Savings
 
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Savings and Aggregate Demand - Determinants of Savings. A video covering Savings and Aggregate Demand - Determinants of Savings Instagram @econplusdal Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
Views: 12514 EconplusDal
4.1 Savings, Investment, and the Financial System AP Macro
 
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The savings-investment identity & the reason why investment spending is so important when it comes to long-run economic growth.
Views: 5146 Carey LaManna
Financial System, Saving and Investment Part 7 National Saving and Investment
 
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How we can get the equation for national saving from Y=C+I+G+NX. Private saving vs. public saving. Budget deficits and surpluses.
Views: 5026 Mike Dennis
Money and Finance: Crash Course Economics #11
 
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So, we've been putting off a kind of basic question here. What is money? What is currency? How are the two different. Well, not to give away too much, but money has a few basic functions. It acts as a store of value, a medium of exchange, and as a unit of account. Money isn't just bills and coins. It can be anything that meets these three criteria. In US prisons, apparently, pouches of Mackerel are currency. Yes, mackerel the fish. Paper and coins work as money because they're backed by the government, which is an advantage over mackerel. So, once you've got money, you need finance. We'll talk about borrowing, lending, interest, and stocks and bonds. Also, this episode features a giant zucchini, which Adriene grew in her garden. So that's cool. Special thanks to Dave Hunt for permission to use his PiPhone video. this guy really did make an artisanal smartphone! https://www.youtube.com/watch?v=8eaiNsFhtI8 Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Fatima Iqbal, Penelope Flagg, Eugenia Karlson, Alex S, Jirat, Tim Curwick, Christy Huddleston, Eric Kitchen, Moritz Schmidt, Today I Found Out, Avi Yashchin, Chris Peters, Eric Knight, Jacob Ash, Simun Niclasen, Jan Schmid, Elliot Beter, Sandra Aft, SR Foxley, Ian Dundore, Daniel Baulig, Jason A Saslow, Robert Kunz, Jessica Wode, Steve Marshall, Anna-Ester Volozh, Christian, Caleb Weeks, Jeffrey Thompson, James Craver, and Markus Persson -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 720474 CrashCourse
Solow Model Application   Effect of an Increase in the Savings Rate
 
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We look at the effect of a change in the savings rate on the solow model. What is the effect on Aggregate Output, Capital, Investment and Consumption, per-capita output, capital, investment and consumption, and per-effective-worker capital and output of an increase in the savings rate? We work with the 'full' solow swan model with labor-augmented technology growth and population growth. More Videos on the Solow Model: https://sites.google.com/site/economicurtis/intermediatemacro/solow _______________ Video Outline Solow Diagram Time Series --Per-effective workers, k ̂,y ̂ --Per-Capita Levels, k,y,i & c --Aggregate Levels, Y,K
Views: 18501 economicurtis
Crowding out | AP Macroeconomics | Khan Academy
 
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How government borrowing could have negative effects on investment and economic growth by "crowding out" private borrowers/investors in the loanable funds market. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything https://www.youtube.com/subscription_center?add_user=khanacademy. View more lessons or practice this subject at http://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-long-run-consequences-of-stabilization-policies/crowding-out/v/crowding-out-ap-macroeconomics-khan-academy?utm_source=youtube&utm_medium=desc&utm_campaign=apmacroeconomics AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us! Khan Academy is a nonprofit organization with the mission of providing a free, world-class education for anyone, anywhere. We offer quizzes, questions, instructional videos, and articles on a range of academic subjects, including math, biology, chemistry, physics, history, economics, finance, grammar, preschool learning, and more. We provide teachers with tools and data so they can help their students develop the skills, habits, and mindsets for success in school and beyond. Khan Academy has been translated into dozens of languages, and 15 million people around the globe learn on Khan Academy every month. As a 501(c)(3) nonprofit organization, we would love your help! Donate or volunteer today! Donate here: https://www.khanacademy.org/donate?utm_source=youtube&utm_medium=desc Volunteer here: https://www.khanacademy.org/contribute?utm_source=youtube&utm_medium=desc
Views: 19392 Khan Academy
Calculating Private Saving, Public Saving, and National Saving
 
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This macroeconomics video explores various measures of saving in a closed economy, as well as solves for the equilibrium real interest rate and level of investment spending.
Views: 1953 1sportingclays
Saving and Borrowing
 
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On September 15, 2008, Lehman Brothers filed for bankruptcy, and signaled the start of the Great Recession. One key cause of that recession was a failure of financial intermediaries, or, the institutions that link different kinds of savers to borrowers. We’ll get to intermediaries in the next video, but for now, we’ll first look at the market intermediaries are involved in. This market is the combination of savers and borrowers—what we call the “market for loanable funds.” To start, we’ll represent the market, using two curves you know well—supply and demand. The quantity supplied in the market comes from savings, and the quantity demanded comes from loans. But as you know, we have to factor in price. In the case of the market for loanable funds, the price is the current interest rate. What happens to the supply of savings when the interest rate goes up? When are borrowers compelled to borrow more? Or less? We’ll cover these scenarios in this video. One quick note: there’s not really one unified market for loanable funds. Instead, there are many small markets, with different sorts of lenders, lending to different sorts of borrowers. As we said in the beginning, it’s financial intermediaries, like banks, bond markets, and stock markets, which link these different sides of the market. We’ll get a better understanding of these intermediaries in our next video, so stay tuned! Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/28OO1zt Next video: http://bit.ly/28Lo8nF Help us caption & translate this video! http://amara.org/v/N6gx/
Productivity and Growth: Crash Course Economics #6
 
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Why are some countries rich? Why are some countries poor? In the end it comes down to Productivity. This week on Crash Course Econ, Adriene and Jacob investigate just why some economies are more productive than others, and what happens when an economy is mor productive. We'll look at how things like per capita GDP translate to the lifestyle of normal people. And, there's a mystery. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Jan Schmid, Simun Niclasen, Robert Kunz, Daniel Baulig, Jason A Saslow, Eric Kitchen, Christian, Beatrice Jin, Anna-Ester Volozh, Eric Knight, Elliot Beter, Jeffrey Thompson, Ian Dundore, Stephen Lawless, Today I Found Out, James Craver, Jessica Wode, Sandra Aft, Jacob Ash, SR Foxley, Christy Huddleston, Steve Marshall, Chris Peters Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 897165 CrashCourse
Net exports and capital outflows
 
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Thinking about how national savings and investment relate to capital flows.
Views: 6964 Khan Academy
Investment and real interest rates | Macroeconomics | Khan Academy
 
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Intuition as to why high real interest rates lead to low investment and why low rates lead to high investment Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/is-lm-model-tutorial/v/connecting-the-keynesian-cross-to-the-is-curve?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/keynesian-cross-tutorial/v/keynesian-cross-and-the-multiplier?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 183640 Khan Academy
The Truth about Savings and Consumption
 
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We regularly hear how important consumer spending is for the economy. The story goes like this: the more consumers spend, the more money circulates in the economy, which stimulates healthy job growth and profits. If people could be encouraged to go out and spend a little more of their paycheck, we'd all be better off. Keynes went as far as to say that individuals saving their money may actually be hurting the economy, as saving reduces "aggregate demand" and therefore company revenue. Sounds troubling, doesn't it? Fear not. You aren't actually hurting anyone by filling up your piggy bank. In fact, savings help the economy, as they make lending to productive entrepreneurs possible. The consumption that we enjoy is only made possible by prior production. And that production is only made possible by savings. For more resources about the economics of saving versus consuming, visit http://www.fee.org/the_freeman/detail/savings-fuel-for-an-economic-engine Scripted, animated, and produced by Steve Patterson. Very special thanks to Julia Patterson.
Saving, Investment, and the Financial System
 
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Recorded with http://screencast-o-matic.com
Views: 1194 Nick Bergan
Office Hours: The Solow Model: Investments vs. Ideas
 
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Ideas are a major factor in economic growth. But so are saving and investing. If you were given the choice between living in an inventive (more ideas) or a thrifty (more savings) country, which would you choose? The Solow model of economic growth, which we recently covered in Principles of Macroeconomics, can help you make the choice. In this Office Hours video, Mary Clare Peate will use our simplified version of the Solow model to show you an easy way to work out each country’s economic prospects, and then compare them to see where you’d rather be. Additional practice questions: http://bit.ly/1YcByds The Solow model playlist: http://bit.ly/1sv2Pfa Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Help us caption & translate this video! http://amara.org/v/LUdW/
Golden Rule Level of Capital & Savings Rate - Solow Model
 
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We find the level of capital that maximizes consumption. We discuss how adjusting the savings rate results in different steady state capital levels, and that there is a particular savings rate, that results in a particular steady state capital level (the golden rule level of capital) that maximizes consumption. We discuss several ways to see this, can calculate the golden rule level of capital. _____________________________ More Videos on the Solow Model: https://sites.google.com/site/economicurtis/intermediatemacro/solow
Views: 93991 economicurtis
Harrod-Domar Model Of Economic Growth. Introduction & Assumption.
 
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The Harrod–Domar model is a classical Keynesian model of economic growth. It is used in development economics to explain an economy's growth rate in terms of the level of saving and productivity of capital. It suggests that there is no natural reason for an economy to have balanced growth. The model was developed independently by Roy F. Harrod in 1939, and Evsey Domar in 1946, The Harrod–Domar model was the precursor to the exogenous growth model. The Harrod Domar Model suggests that economic growth rates depend on two things. Level of Savings (higher savings enable higher investment) Capital-Output Ratio. A lower capital-output ratio means investment is more efficient and the growth rate will be higher. Assumptions of the Harrod-Domar model. (i) A full-employment level of income already exists. (ii) There is no government interference in the functioning of the economy. (iii) The model is based on the assumption of “closed economy.” In other words, government restrictions on trade and the complications caused by international trade are ruled out. (iv) There are no lags in adjustment of variables i.e., the economic variables such as savings, investment, income, expenditure adjust themselves completely within the same period of time. (v) The average propensity to save (APS) and marginal propensity to save (MPS) are equal to each other. APS = MPS or written in symbols, S/Y= ∆S/∆Y (vi) Both propensity to save and “capital coefficient” (i.e., capital-output ratio) are given constant. This amounts to assuming that the law of constant returns operates in the economy because of fixity of the capita-output ratio. (vii) Harrod-Domar model is a longrun term growth model. (viii) Income, investment, savings are all defined in the net sense, i.e., they are considered over and above the depreciation. Thus, depreciation rates are not included in these variables. (ix) Saving and investment are equal in ex-ante as well as in ex-post sense i.e., there is accounting as well as functional equality between saving and investment. These assumptions were meant to simplify the task of growth analysis; these could be relaxed later. (x) General price level is constant and money income and real income is equal to each other. (xi) Interest rate is constant.
Views: 8353 Know Economics
Saving, Investment and the Financial System.mp4
 
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Saving, Investment and the Financial System.mp4
Views: 3807 Phil Klein
Alternative Theories of Economic Growth and Inflation [Segment 8]
 
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Taught by John Smithin Assisted by Fredrick Zhou There are two alternative views about how to promote economic growth. We develop two generic growth equations, each including the trade balance, the primary budget deficit, and the domestic investment/savings balance, to explain the underlying arguments. The first illustrates a “Keynes’s-type” theory, focusing on demand growth. This validates the idea that fiscal expansion leads to growth, that investment drives saving (the “paradox of thrift”) and that a trade surplus leads to growth (“monetary mercantalism”). The second approach leads to a “classics-type” theory, stressing capital accumulation and supply. However, this yields seriously anomalous results, and does not provide a solid foundation for the classical theories of trade, saving, and public finance. There are also multiple theories of inflation, those descended from the quantity theory, from Wicksell, and also various theories of “cost push” or “conflict” inflation. If money is endogenous there is plenty of scope for the latter. Also the parameters of both the money demand and (endogenous) money supply functions must be relevant. These are literally measures of “liquidity preference” - on both sides of the money market.
Views: 1011 New Economic Thinking
Lesson 4 - Personal Savings and Investment are Important for the Economy [pt. 1]
 
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Dr. Demos Vardiabasis on post WWII global economy http://bit.ly/m549
Views: 7407 BasicEconomics
Revision Consumption Savings and Investment - Macroeconomics Lecture # 12(B)
 
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Revision Consumption Savings and Investment - Macroeconomics Lecture # 12(B) Subscribe this channel to get more knowledge,Lectures,Presentations etc. Youtube: https://www.youtube.com/channel/UCuBvNmo-Q42RPTisa-b1_-w?sub_confirmation=1 Facebook: https://www.facebook.com/g8knowledge Twitter: https://www.twitter.com/g8knowledge Instragram: https://www.instagram.com/knowledgeget Course Description: The course introduces the students to the fundamentals of economics and how economy operates. The topics included are introduction to macroeconomics, law of demand and supply, fiscal and monetary policy and financial institutions, and use of economic indicators to forecast an economic growth. Course Objective: The objective of this course is that the students will have the basic knowledge of the economic concepts and phenomena be able to understand the working of an economy in an international context and will have an understanding about major economic issues and problems of the day. Macroeconomic factors and policies that affect the business activities in an open economy. The students will also have an insight into the functioning of macroeconomic activities and also macroeconomic indicators. They will be able to view the economy in global perspective. After completing the course the students will be able to apply the principles of macroeconomics to solve economic problems being faced by both public and private sectors of Pakistan. Learning Outcome: At the end of this course it is expected that the student should be able to: 1. Identify the circular flow of output, expenditure and incomes in an economy. 2. Make a distinction between injections and withdrawals from the circular flow of income. 3. The overall functioning of the economy. 4. The key role of macroeconomic indicators in understanding the economy. 5. Understand the concept of macroeconomic equilibrium and implications for the management of the business cycle. 6. To understand the fluctuations of business cycles about trend in real GDP. 7. The revolution that came in the area of economics through the efforts of Keynes. 8. Discuss and compare the Keynesian theory with the classical theory. 9. The role of fiscal and monetary policy in stabilizing the economy. 10. Describe the tools used by the central bank to conduct its monetary policy. 11. Describe the recent history of federal expenditures, tax revenues, and budget deficit. 12. Analyze the importance of international trade to the Pakistan economy and evaluate the effects of government policy measures on the exchange rate and trade. Course Contents: Topics to be covered Consumption function The Multiplier Autonomous consumption Induced consumption Marginal Propensity to Consume The Consumption Function Savings The Simple Theory of Investment The Investment Function Consumption and Investment Functions Equilibrium National Income Investment Multiplier
Views: 2154 Get Knowledge
The Solow Model and the Steady State
 
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Remember our simplified Solow model? One end of it is input, and on the other end, we get output. What do we do with that output? Either we can consume it, or we can save it. This saved output can then be re-invested as physical capital, which grows the total capital stock of the economy. There's a problem with that, though: physical capital rusts. Think about it. Yes, new roads can be nice and smooth, but then they get rough, as more cars travel over them. Before you know it, there are potholes that make your car jiggle each time you pass. Another example: remember the farmer from our last video? Well, unless he's got some amazing maintenance powers, in the end, his tractors will break down. Like we said: capital rusts. More formally, it depreciates. And if it depreciates, then you have two choices. You either repair existing capital (i.e. road re-paving), or you just replace old capital with new. For example, you may buy a new tractor. You pay for these repairs and replacements with an even greater investment of capital. We call the point where investment = depreciation the steady state level of capital. At the steady state level, there is zero economic growth. There's just enough new capital to offset depreciation, meaning we get no additions to the overall capital stock. A further examination of the steady state can help explain the growth tracks of Germany and Japan at the close of World War II. In the beginning, their first few units of capital were extremely productive, creating massive output, and therefore, equally high amounts available to be saved and re-invested. As time passed, the growing capital stock created less and less output, as per the logic of diminishing returns. Now, if economic growth really were just a function of capital, then the losers of World War II ought to have stopped growing once their capital levels returned to steady state. But no, although their growth did slow, it didn't stop. Why is this the case? Remember, capital isn't the only variable that affects growth. Recall that there are still other variables to tinker with. And in the next video, we'll show two of those variables: education (e) and labor (L). Together, they make up our next topic: human capital. Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/23B5u4b Next video: http://bit.ly/1Sdlrvx Help us caption & translate this video! http://amara.org/v/IM5L/
Dismantling Keynesian Economics: Savings, Investment, Consumption, and Income
 
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Alex Merced discusses what he sees as flaws in the Keynesian doctrine DONATE TO ALEX HERE - http://bit.ly/gaONDQ Alexs Amazon Bookstore - http://astore.amazon.com/alexmercom-20 Please Help Support the efforts of Alex Merced and AlexMerced.com and purchase from these affiliates: PUMA - Buy Shoes!!! (I do love Pumas) http://bit.ly/dZKDYT Barnes & Noble - Buy Books (Rothbard, Mises, so many books to choose from) http://bit.ly/g4LDji
Views: 649 Alex Merced
Financial Markets - Finance, Saving, and Investment (1/3) | Principles of Macroeconomics
 
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This lecture focuses on the different types of financial markets in the economy. The topics covered in this series: - finance and money - capital - gross investment and net investment - wealth and saving - financial capital markets - financial institutions - assets and interest rates - financing investment - real and nominal interest rates - the demand for loanable funds - the supply of loanable funds - effects of a government budget surplus on the loanable funds market - effects of a government budget deficit on the loanable funds market - the Ricard-Barro effect finance and liberty | finance 101 | finance news | finance lecture | finance for dummies | finance major | finance documentary 2015 | finance saving and investment
Views: 8574 Inspirare
Level 1 CFA Economics: Aggregate Output Prices and Economic Output-Lecture 3
 
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This video is valid for both 2018 & 2019 CFA exams. This CFA exam prep video lecture covers: Aggregate Demand Relationship between saving, investment, fiscal balance and trade balance IS Curve For the COMPLETE SET of 2018 Level I CFA Videos sign up for the IFT Level I FREE VIDEOS Package: https://ift.world/free Subscribe now: http://www.youtube.com/user/arifirfanullah?sub_confirmation=1 For more videos, notes, practice questions, mock exams and more visit: https://www.ift.world/ Visit us on Facebook: https://www.facebook.com/Pass.with.IFT/
Views: 17005 IFT
savings and investment
 
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video lecture on the connection between savings and investment. covers why people save and the variables that affect savings (supply of loanable funds). also covers the variables that affect firms decision to borrow (demand loanable funds). finally looks at the market for loanable funds and how the principle of market forces leads to an equilibrium. as presented this lecture fits best with the discussion of economic growth and poverty traps. but it also lays the foundation for more discussion of financial intermediaries and financial crises.
Views: 718 Jared Boyd
The Financial Sector - Macroeconomics 4.1
 
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I explain the key terms of the financial sector, including: assets, liabilities, loans, bonds, stocks, and interest rates. Next video: 3 Functions of Money https://www.youtube.com/watch?v=3PP2j60LvjU Unit Playlist: https://www.youtube.com/playlist?list=PLD7C33AB80B405B9A
Views: 135764 Jacob Clifford
The Loanable Funds Market - Finance, Saving, and Investment (2/3) | Principles of Macroeconomics
 
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This lecture focuses on explaining the loanable funds market. The topics covered in this series: - finance and money - capital - gross investment and net investment - wealth and saving - financial capital markets - financial institutions - assets and interest rates - financing investment - real and nominal interest rates - the demand for loanable funds - the supply of loanable funds - effects of a government budget surplus on the loanable funds market - effects of a government budget deficit on the loanable funds market - the Ricard-Barro effect finance and liberty | finance 101 | finance news | finance lecture | finance for dummies | finance major | finance documentary 2015 | finance saving and investment
Views: 3743 Inspirare
Saving and Investing
 
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Introduction to saving and investing https://www.teacherspayteachers.com/Store/Darrens-Store
Views: 889 Darren Landinguin
Government Intervention -  Finance, Saving, and Investment (3/3) | Principles of Macroeconomics
 
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This lecture focuses on the effects that the government can have on the loanable funds market. The topics covered in this series: - finance and money - capital - gross investment and net investment - wealth and saving - financial capital markets - financial institutions - assets and interest rates - financing investment - real and nominal interest rates - the demand for loanable funds - the supply of loanable funds - effects of a government budget surplus on the loanable funds market - effects of a government budget deficit on the loanable funds market - the Ricard-Barro effect finance and liberty | finance 101 | finance news | finance lecture | finance for dummies | finance major | finance documentary 2015 | finance saving and investment
Views: 1872 Inspirare
Intro to the Solow Model of Economic Growth
 
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Here's a quick growth conundrum, to get you thinking. Consider two countries at the close of World War II—Germany and Japan. At that point, they've both suffered heavy population losses. Both countries have had their infrastructure devastated. So logically, the losing countries should’ve been in a post-war economic quagmire. So why wasn't that the case at all? Following WWII, Germany and Japan were growing twice, sometimes three times, the rate of the winning countries, such as the United States. Similarly, think of this quandary: in past videos, we explained to you that one of the keys to economic growth is a country's institutions. With that in mind, think of China's growth rate. China’s been growing at a breakneck pace—reported at 7 to 10% per year. On the other hand, countries like the United States, Canada, and France have been growing at about 2% per year. Aside from their advantages in physical and human capital, there's no question that the institutions in these countries are better than those in China. So, just as we said about Germany and Japan—why the growth? To answer that, we turn to today's video on the Solow model of economic growth. The Solow model was named after Robert Solow, the 1987 winner of the Nobel Prize in Economics. Among other things, the Solow model helps us understand the nuances and dynamics of growth. The model also lets us distinguish between two types of growth: catching up growth and cutting edge growth. As you'll soon see, a country can grow much faster when it's catching up, as opposed to when it's already growing at the cutting edge. That said, this video will allow you to see a simplified version of the model. It'll describe growth as a function of a few specific variables: labor, education, physical capital, and ideas. So watch this new installment, get your feet wet with the Solow model, and next time, we'll drill down into one of its variables: physical capital. Helpful links: Puzzle of Growth: http://bit.ly/1T5yq18 Importance of Institutions: http://bit.ly/25kbzne Rise and Fall of the Chinese Economy: http://bit.ly/1SfRpDL Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/1RxdLDT Next video: http://bit.ly/1RxdSzo Help us caption & translate this video! http://amara.org/v/IHQj/
Tax Reform and Economic Growth
 
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The current tax system imposes high marginal tax rates on work, and its treatment of savings and investment is destructive. The current system distorts economic activity and impedes economic progress. In economics terms, the current tax system has a massive excess burden or deadweight loss. Tax reform offers the prospect of dramatically reducing this deadweight loss, leading to a renewed prosperity and substantially improved living standards for all Americans. Join us as our speakers explain why the tax system is economically destructive, what kinds of tax reform would fix the problem and what the magnitude of the economic gains from tax reform could be.
The Impact Of Savings On Retirement
 
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Putting aside money for retirement early and often is important in order to take advantage of compounding.
Savings Investment Gap and External Stability
 
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See more videos at: http://talkboard.com.au/ In this video, we look at how the pool of national savings can affect the goal of external stability. National savings is an important factor when it comes to determining interest rates, the level of domestic and foreign investment and consequently our external stability.
Views: 2061 talkboard.com.au
How Does Investment Help Economic Growth?
 
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Adam Hersh talks about the importance of public investment, what areas of investment help economic growth, and how the Republicans' continuing resolution will impact economic growth.
Views: 531 seeprogress
CIU Case 1: Can Domestic Savings Cover Investment Needs
 
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Members: Magno, Angelika Amurao, Angelica Rufin, Shenelle
Views: 118 Angelika
How is wealth created #savings and investments | 3 Golden rules for Investments
 
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Nivesh ke liye niyam How is wealth created? Saving and investing is the key to personal wealth as well as the economic growth. Learn Austrian Economics in a fun way! #BLUEMOONWEALTH WWW.BLUEMOONWEALTH.ORG
Views: 35 Bluemoon Wealth
Understanding The impact of Consumption, Savings, Debt Economics on GDP
 
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Tutorial on the relationship of consumption, savings and debt. Also a brief discussion about the Ricardo Equivalence. http://www.MyBookSucks.Com "Party More Study Less"
Views: 3095 Economicsfun
Inflation: Cost of  inflation
 
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The cost of inflation is described in terms of the distribution effect, economic effect and social and political effects. Explain how it distribute wealth from lenders to borrowers. How it impact on savings, investment, balance of payments, functioning of the price mechanism and economic growth. How it might lead to an inflation spiral and hyper inflation.
Views: 8747 lostmy1
Solow Growth Model: A Numerical Example
 
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This video reviews (non-graphically) the essential ideas of the Solow growth model and provides a numerical example, solving for the steady state capital-labor ratio, steady state GDP per worker, steady state investment per worker, and steady state consumption per worker. For more macro videos see here: IS-LM Model: https://youtu.be/JkvEqEH_dCk Deriving Aggregate Demand: https://youtu.be/wM6vioFM0x8
Views: 65164 1sportingclays
Impacts of Domestic Savings on Economic Growth of Vietnam  AJEM 53 245 252
 
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Impacts of Domestic Savings on Economic Growth of Vietnam
Views: 32 Research Media
The Solow Model and Ideas
 
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More Solow Model from MRU’s Macro course: the power of ideas in driving economic growth. A deeper dive into what helps spur the creation of ideas. According to our previous videos in this section, the Solow model seems to predict that we’ll always end up in a steady state with no economic growth. But, the Solow model still has one variable unaccounted for: ideas. So, can ideas keep us growing? Ideas do one thing really well: they give us more bang for our buck. This means we get more output for the same inputs of capital and labor. Ideas are a way of upping our productivity, increasing output per worker across different industries. Just how much extra output are we talking about? Well, imagine changing the A variable of the Solow model from 1 to 2. This means a doubling of our productivity. This shifts the entire output curve upward. When output doubles, so does investment. Once investment comes in faster than depreciation, we end up accumulating capital once again.Thus, the economy keeps growing, which further boosts output. Now, think of what would happen, if ideas continually improved. With each improvement, ideas would keep shifting the output curve upward, which will continually increase investment as well, and allow us to keep to the left of the steady state. And when we stay to the left, that means we keep growing. What all this means is, growth at the cutting edge is determined by two things. First, it's determined by how fast new ideas are formed, and second, by how much those ideas increase productivity. You now have a complete picture of our simple Solow model. It's a model that accounts for catching up growth, due to capital accumulation, and cutting edge growth, due to the buildup of ideas. Now, since ideas foster growth at the cutting edge, we're left with the question that naturally follows: what factors help spur the accumulation of ideas? That's what we'll discuss in the next video, so hang tight! Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Development Economics Course: http://bit.ly/1OcVp4z Ask a question about the video: http://bit.ly/24mLDtg Next video: http://bit.ly/24mMhqH Office Hours: http://bit.ly/25M2w1i Help us caption & translate this video! http://amara.org/v/ITee/
Economic Growth and Sustainability - Economic Growth (4/4) | Principles of Macroeconomics
 
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The focus of this video is to see if economic growth is sustainable. The topics covered in the Economic Growth series: - calculating growth rates - economic growth vs. business cycle expansions - the rule of 70 - how potential GDP grows - the aggregate production function - the aggregate labour market - growth of the supply of labour - effects of a growth in labour productivity - why labour productivity grows - classical growth theory - neoclassical growth theory - new growth theory - policies for achieving faster growth economic growth macroeconomics | economic growth model | economic growth 2016 | economic growth and the investment decision | economic growth ac dc | economic growth rate | economic growth graph | economic growth through investment
Views: 2251 Inspirare
#6  Realigning the household sector’s savings towards financial assets (HD)
 
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Series of lectures on the Indian economy: https://www.youtube.com/c/TheFloatingSchool This is the 6th video under the series "Indian Economy". The Indian household sector’s savings can be classified into two categories – a) Physical savings (investment in property, machinery, precious metals) b) Financial savings (cash in hand, bank deposits, equity and insurance) The household sector continues to be the largest contributor to the gross domestic savings of the country, but the sector is losing its momentum. It now makes up 60 percent of overall savings, down from 70 percent four years earlier. In addition to falling household savings, its form is also imbalanced. In 2006-07, financial assets accounted for about 50 percent of the entire household savings. But the contribution of financial assets declined to about 30% in 2012-13. Website: http://thefloatingschool.com/indian-economy/ Follow me on Quora: https://www.quora.com/profile/Aditya-Jaiswal-58 Share the video: https://youtu.be/tjJLCgjPpJc
Views: 976 The Floating School
Dr C Rangarajan: Long term economic fundamentals
 
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Dr C Rangarajan: The major change that has occurred in the Indian economy in the recent past has been the rapid rise in the savings rate and the investment rate. In 2007-08, when we had a growth rate of 9.4 per cent, our domestic savings rate had touched 36 per cent of GDP and the investment rate had touched 38 per cent of GDP. It is this high level of savings rate and investment rate, which will be responsible for pushing the economy on a higher growth path.