

Jibin Park
The Definition & Time Value of Money
Slide Duration:Table of Contents
Section 1: Introduction
Intro to Macroeconomics
43m 55s
- Intro0:00
- Lesson Overview0:14
- What is Economics?1:33
- The Study of How People Seek to Satisfy Their Needs and Wants by Making Choices1:40
- Scarcity1:56
- Four Factors of Production (Resources)2:59
- Land3:40
- Labor3:53
- Capital4:06
- Entrepreneurship4:50
- Needs vs. Wabts5:10
- Choice and Cost11:24
- Opportunity Cost12:41
- Trade-Off13:20
- Opportunity Cost Example14:16
- Positive Economics vs. Normative Economics16:19
- Positive Economics16:40
- Normative Economics17:26
- Is It Normative or Positive?18:30
- Marginal Analysis20:54
- Thinking at the Margin21:03
- All or Nothing Propositions21:29
- Whether or Not to Consume the Next Unit22:01
- Marginal Analysis Example22:10
- Production Possibilities Frontier25:00
- Graph25:17
- Efficiency25:25
- Underutilization25:38
- PPF Graphs25:45
- Guns or Butter Analogy26:03
- Increasing Opportunity Cost27:48
- Law of Increasing Opportunity Cost27:54
- Curve Will Be Concave28:04
- Example28:08
- Constant Opportunity Cost33:45
- Definition of Constant Opportunity Cost34:07
- Downward-Sloping Line34:14
- Example34:17
- Example 137:32
- Example 239:12
- Example 340:37
- Example 442:11
Comparative Advantage & Trade
45m 14s
- Intro0:00
- Lesson Overview0:07
- Different Types of Economies1:30
- Market Economy1:41
- Command Economy2:28
- Mixed Economies3:50
- Absolute Advantage4:38
- Better In Producing a Particular Product4:54
- Example5:03
- Comparative Advantage8:09
- Lower Opportunity Cost in Producing a Particular Product8:27
- Example8:52
- Comparative Advantage and PPF Graph14:30
- Example 121:33
- Example 225:57
- Example 328:59
- Example 430:17
- Example 535:21
- Example 640:37
Supply & Demand
48m 5s
- Intro0:00
- Lesson Overview0:09
- Supply and Demand1:34
- Supply and Demand Model1:39
- Demand Curve2:19
- Supply Curve2:23
- Set of Factors2:33
- Equilibrium Price and Quantity2:55
- Demand Schedule and Demand Curve3:09
- Market Demand Schedule3:19
- Market Demand Curve3:42
- Example3:51
- Shifts of the Demand Curve8:03
- Changes in the Prices of Related Goods8:19
- Changes in Income12:43
- Changes in Tastes14:35
- Changes in Expectations15:47
- Increase in Demand (Rightward Shift)17:25
- Decrease in Demand (Leftward Shift)18:37
- Supply Schedule and Supply Curve19:45
- Market Supply Schedule19:57
- Market Supply Curve20:09
- Example20:15
- Shifts of the Supply Curve23:38
- Changes in Input Prices24:04
- Changes in Technology24:49
- Changes in Expectations25:38
- Increase in Supply (Rightward Shift)26:56
- Decrease in Supply (Leftward Shift)28:10
- Supply, Demand, and Equilibrium29:02
- Equilibrium Price29:14
- Equilibrium Quantity29:26
- Equilibrium29:32
- Surplus and Shortage30:58
- Surplus31:09
- Shortage31:17
- Example31:22
- Example 134:50
- Example 236:05
- Example 338:09
- Example 441:53
- Example 545:09
Changes in Supply and Demand
30m 7s
- Intro0:00
- Lesson Overview0:17
- Shifts of the Demand or Supply Curve1:34
- Demand Shift to the Right1:47
- Demand Shift to the Left2:04
- Supply Shift to the Right2:28
- Supply Shift to the Left2:42
- Example 13:36
- Example 25:46
- Example 37:43
- Example 49:37
- Shifts of Both the Demand and Supply Curves11:53
- Demand and Supply Shift to the Right13:24
- Demand and Supply Shift to the Left13:36
- Supply Shift to the Left and Demand Shift to the Right13:55
- Supply Shift to the Right and Demand Shift to the Left14:18
- Example 517:13
- Example 620:21
- Example 722:44
- Example 825:06
Section 2: Measurements of Economic Performances
Gross Domestic Product
50m 25s
- Intro0:00
- Lesson Overview0:27
- National Accounts1:20
- National Income and Product Accounts1:21
- Macroeconomist Equation2:35
- Circular Flow of the Economy9:23
- Household11:52
- Firms12:16
- Product Market12:31
- Factor Market12:40
- Expanded Circular Flow Diagram22:26
- GDP Explained30:36
- Gross Domestic Product30:43
- First Method of Calculating34:01
- Second Method35:00
- Third Method35:34
- Real vs. Nominal GDP36:21
- Nominal GDP36:36
- Real GDP36:51
- Which is a More Accurate Means of Measuring Economic Growth38:04
- Real GDP Example (2010 Base)39:08
- Real GDP Per Capita47:36
- Real GDP Per Capita48:46
- Imperfect Measure but Generally Best Measure of Standard of Living49:59
Unemployment
43m 39s
- Intro0:00
- Lesson Overview0:14
- Am I Unemployed?1:59
- Unemployment Measures4:43
- Employed4:46
- Unemployed5:20
- Labor Force5:53
- Labor Force Participation6:21
- Unemployment Rate6:39
- Unemployment Example7:56
- Limitations of the Unemployment Rate11:06
- Unemployment Tends to Understand the Employment Situation11:16
- Marginally Attached to Labor Force11:32
- Discouraged Worker12:20
- Underemployed13:17
- Types of Unemployment14:37
- Frictional Unemployment14:45
- Structural Unemployment16:06
- Cyclical Unemployment17:00
- Effect of Minimum Wage of Labor Market19:00
- Natural Unemployment Rate22:36
- Natural Unemployment22:13
- Actual Unemployment23:47
- Full Employment24:06
- Unemployment Examples25:54
- US Unemployment Data26:16
- Unemployment Rate Declined in November 201326:59
- Civilian Labor Force Rose28:47
- Return of Furloughed Federal Government Worker29:10
- 2.1 Million Marginally Attached to the Labor Force Went Down29:44
- Reasons to Not Join Labor Force30:50
- Average Workweek Increased31:17
- Average Hourly Earnings Increased31:48
- Trends in US Unemployment32:20
- Unemployment Rate Example34:29
Inflation
28m 44s
- Intro0:00
- Lesson Overview0:09
- What is Inflation?1:11
- Purchasing Power of Your Money Decreases1:16
- All Prices Increase1:46
- Fed Chairman Paul Volcke's Top Priority2:14
- Target Federal Funds Rate2:52
- What's Wrong with Inflation3:37
- Costs of Inflation3:48
- Shoe-Leather Costs3:57
- Menu Costs4:49
- Unit-of-Account Costs5:55
- Crucifying Mankind on a Cross of Gold6:32
- Winners and Losers from Inflation8:16
- Nominal Interest Rate8:21
- Real Interest Rate9:10
- Real Interest Rate Examples11:26
- Wage-Price Spiral14:29
- Combination of 'Cost-Push' and 'Demand-Pull' Inflation14:33
- Demand-Pull Inflation14:41
- Wage-Price Spiral15:13
- Keynesians Tend to Favor This Model of How Inflation Works16:10
- Monetarist View of Inflation17:04
- Issue of Money Supply17:13
- Quantity Theory of Money17:28
- Austrian View17:53
- Paul Krugman's View18:47
- Measurement and Calculation of Inflation19:37
- Aggregate Price Level19:41
- Market Basket19:48
- Price Index20:02
- Consumer Price Index and PPI21:51
- Consumer Price Index21:58
- Producer Price Index23:59
- GDP Deflator24:35
- GDP Deflator Equation24:36
- Shows How Much the Aggregate Price Level Has Increased24:55
- Not Based on a Fixed Basket of Good's and Services25:05
- Default Basket25:24
- Price Index Problems25:54
Section 3: National Income and Price Determination
Aggregate Demand
30m 20s
- Intro0:00
- Lesson Overview0:07
- What is Aggregate Demand1:29
- Aggregate Demand Curve1:34
- All Things Equal2:10
- Basic Equation of National Income Accounting2:35
- Aggregate Demand Curve3:54
- Why is the AD Downward Sloping?6:36
- Demand Curve for an Individual Good6:56
- Aggregate Demand7:32
- Why Does a Rise in Aggregate Price Level Lead to a Fall in the Quantity of All Domestically Produced Goods?8:00
- The Wealth and Interest Rate Effect8:25
- Wealth Effect8:34
- Interest Rate Effect9:47
- Shifts in the Aggregate Demand Curve11:01
- Changes in Expectations11:30
- Changes in Wealth12:47
- Sixe of the Existing Stock of Physical Capital13:34
- Monetary and Fiscal Policy14:13
- Fiscal Policy14:26
- Monetary Policy16:32
- Example 120:27
- Example 221:52
- Example 324:20
- Example 426:06
Aggregate Supply
24m 3s
- Intro0:00
- Lesson Overview0:12
- What is Short-Run Aggregate Supply?1:11
- Shows the Relationship1:17
- Profit Per Unit of Output1:41
- Aggregate Supply Curve2:35
- Nominal Wages and Sticky Wages4:05
- Largest Source of Inflexible Production Cost4:11
- Nominal Wages Paid to Workers5:09
- Sticky Wages5:48
- Slow to Fall in Unemployment6:04
- Shifts in the Aggregate Supply Curve9:33
- Changes in Commodity Prices10:15
- Changes in Nominal Wages10:45
- Changes in Productivity11:29
- Long-Run Aggregate Supply Curve12:24
- Shows the Relationship12:30
- Potential Output12:47
- What Would Shift the LRAS?13:57
- Example 115:10
- Example 218:11
- Example 320:37
- Example 421:41
Aggregate Supply & Demand
43m 41s
- Intro0:00
- Lesson Overview0:11
- Long-Run Macroeconomic Equilibrium1:06
- The AD-AS Model3:29
- Short-Run Macroeconomic Equilibrium3:34
- Long-Run Macroeconomic Equilibrium4:00
- Recessionary Gap4:55
- Inflationary Gap5:20
- The Long-Run Approach5:50
- Initial Negative Demand Shock6:33
- Higher Unemployment in the Short-Run6:52
- Economy Moves Back to Potential Output7:12
- Self-Correcting Recessionary Gap7:54
- Expansionary Fiscal Policy11:22
- 'In the Long-Run, We Are All Dead'12:11
- Increase Government Spending13:00
- Decrease Taxes13:30
- Increase in Government Transfers13:55
- Expansionary Fiscal Policy Graph14:27
- The Long-Run Approach18:08
- An Initial Positive Demand Shock18:21
- Higher Inflation and Reduced Unemployment18:20
- Economy Moves Back to Potential Output18:27
- Self-Correcting Inflationary Gap19:04
- Contrationary Fiscal Policy22:39
- President Johnson's Temporary Hike on Income Taxes22:50
- Decrease Government Spending23:16
- Increase Taxes23:34
- Decrease in Government Transfers23:50
- Contrationary Fiscal Policy Graph24:05
- Stabilization Policy28:10
- Government Policy to Refuce the Severity of Recessions28:17
- Should the Government Use Fiscal Policy to Reduce the Severity of Negative Demand Shocks28:37
- What Should the Government Due in the Face of a Negative Supply Shock?30:19
- Example 131:32
- Example 234:30
- Example 338:22
- Example 439:58
Fiscal Policy & The Multiplier
45m 30s
- Intro0:00
- Lesson Overview0:09
- The MPC and MPS1:19
- Investment Spending Increases1:29
- Increased Output2:03
- Marginal Propensity to Consumer and Marginal Propensity to Save3:02
- MPC3:18
- MPS3:28
- The Marginal Propensity to Consume3:57
- Number Is 04:55
- Number is 15:13
- Number is Usually Between 0 and 16:39
- Number is 0.87:52
- Formula8:15
- The Multiplier Effect9:51
- Autonomous Change in Aggregate Spending9:59
- Multiplier10:36
- Size of the Multiplier11:36
- Consumption Function13:15
- Equation Showing How an Individual's Household's Consumer Spending Changes with Disposable Income13:45
- Autonomous Consumer Spending13:58
- Formula14:48
- Example15:30
- Consumption Function Example18:27
- Shifts of the Aggregate Consumption Function21:31
- Changes in Expected Future Disposable Income21:42
- Changes in Aggregate Wealth23:22
- Investment Spending24:12
- If Interest Rates Go Up or Down24:36
- Expected Future Growth25:07
- Formula25:18
- Positive Unplanned Inventory Investment25:31
- Tax (or Government Transfer) Multiplier26:38
- Automatic Stabilizers31:26
- As the Economy Expands32:03
- As the Economy Contracts32:42
- 2008 and 2009 Stimulus Package33:20
- 2008 Question of Tax Cuts or Transfer Payments33:21
- 2009 American Recovery and Reinvestment Act36:16
- Example 138:23
- Example 241:19
- Example 342:33
- Example 443:13
Section 4: Financial Sector
Saving, Investment & the Financial System
48m 57s
- Intro0:00
- Lesson Overview0:08
- Saving-Investment Spending Identity1:49
- Savings-Investment Spending Identity2:09
- Imagine a Country with No Government and No Trade2:35
- Budget Surplus and Deficit7:34
- Budget Surplus8:19
- Budget Deficit10:34
- Budget Balance12:19
- National Savings12:42
- Capital Inflows and Outflows14:26
- Cashflow15:10
- Capital Inflow15:57
- 2008 Example16:12
- Tasks of a Financial System20:43
- Reduce Transaction Costs21:25
- Reduce Risk21:59
- Provide Liquidity24:04
- Types of Financial Assets25:29
- Bonds25:45
- Loan-Backed Securities28:39
- Stocks30:12
- Financial Intermediary31:56
- Types of Financial Intermediaries32:01
- 75% of Wealth in U.S. is Held by These Four32:29
- Mutual Funds33:08
- Definition of Mutual Funds33:17
- Benefit34:39
- Downside35:03
- Households Owned Over $10 Trillion in Mutual Funds37:47
- Fidelity Investments38:02
- Pension Funds and Life Insurance38:16
- Pension Funds38:22
- Life Insurance40:31
- Banks42:34
- Accept Funds From Depositors42:40
- Keep a Fraction of Customers' Deposits in Cash Form42:44
- FDIC43:55
- Example 144:10
- Example 245:01
- Example 345:48
- Example 447:34
The Definition & Time Value of Money
34m 5s
- Intro0:00
- Lesson Overview0:21
- What is Money?1:49
- Assets That Can Be Easily Used to Purchase Goods and Services1:52
- Money in Savings Accounts, CDs or Money Market Accounts3:02
- Roles of Money5:37
- Medium of Exchange5:53
- Store of Value6:56
- Unit of Account9:15
- Types of Money9:56
- Commodity Money10:16
- Commodity-Backed Money10:50
- Fiat Money12:20
- M1 and M216:29
- M116:34
- M216:40
- 2010 Facts17:01
- A Penny Doubled18:59
- Present vs. Future Value20:26
- Formula20:35
- Future Value20:42
- Present Value20:49
- Interest Rate20:54
- Time Period of Investment20:57
- $0.01 = ?????23:25
- Winning the Lottery Example24:52
- Example 127:06
- Example 228:33
- Example 329:34
- Example 431:21
Banking & Money Creation
32m
- Intro0:00
- Lesson Overview0:12
- What Do Banks Do?1:09
- What Are Banks1:13
- Restrictions1:52
- Federal Reserve2:24
- Assets and Liabilities of Park's Place Bank2:39
- The Problem of Bank Runs6:36
- Financial Trouble Rumors Lead to Depositors Withdrawing Funds7:17
- Panic7:30
- Self-Fulfilling Prophecy8:02
- Bank Regulation8:37
- Deposit Insurance8:56
- Capital Requirement9:46
- Reserve Requirements10:21
- Discount Window11:23
- Money Creation Process12:24
- Money Multiplier Formula15:20
- Required Reserve Ratio15:23
- Example15:31
- Real World Money Multiplier17:11
- Some People Hold Onto Cash17:16
- Monetary Base17:37
- Money Supply18:20
- Money Multiplier18:33
- Normally It Is About 1.919:08
- 2008: It Was About 0.819:35
- Venn Diagram20:06
- Example 122:28
- Example 223:57
- Example 326:30
- Example 429:05
The Federal Reserve & Monetary Policy
25m 42s
- Intro0:00
- Lesson Overview0:08
- History of the Federal Reserve1:23
- Established in 19131:27
- Private Institution with a Public Component2:22
- Board of Governors3:10
- The Federal Reserve Structure3:54
- 12 Federal Reserve Banks3:57
- Federal Open Market Committee4:50
- Functions of the Federal Reserve5:22
- Provide Financial Services5:35
- Supervise and Regular Banking Institutions6:14
- Maintain the Stability of the Financial System6:34
- Conduct Monetary Policy7:20
- Reserve Requirement and Discount Rate8:00
- Reserve Requirement8:10
- Discount Rate10:24
- Open Market Operations10:55
- Fed Buys or Sells U.S. Treasury Bills Through a Commercial Bank11:25
- How Do They Purchase It?12:36
- The Financial Crisis of 200813:31
- Subprime Lending and the Housing Bubble13:36
- Fed Chair Alan Greenspan14:01
- Low Interest Rates14:23
- 2003-2006 Suprime Lending Increased in Popularity14:52
- Crisis and Response16:19
- Housing Collapse16:24
- Fed Bailed Our Bear Stearns and Insurance Giant AIG16:37
- Widespread Panic in the Financial System16:55
- Quantitative Easing17:48
- Example 118:45
- Example 219:25
- Example 320:07
- Example 422:57
The Money Market
33m 52s
- Intro0:00
- Lesson Overview0:04
- Opportunity Cost of Holding Money0:57
- Can't Be Used to Invest in Other Assets1:02
- 2007 Federal Funds Rate2:24
- 2008 Federal Funds Rate2:35
- 2009 Federal Funds Rate2:42
- The Money Demand Curve5:01
- Shifts of the Money Demand Curve6:29
- Changes in the Aggregate Price Level7:18
- Changes in Real GDP8:54
- Changes in Technology9:44
- Changes in Institutions12:55
- Money and Interest Rates13:24
- FOCM Sets up the Target Federal Funds Rate13:28
- Lower Federal Funds Rate15:11
- 0% Federal Funds Rate Era16:10
- Liquidity Preference Model16:56
- Liquidity Preference Model of the Interest Rate17:09
- Open Market Operations18:21
- Changing Reserve Requirements18:52
- Lending Through the Discount Window19:22
- Equilibrium in the Money Market19:52
- Example 121:19
- Example 223:21
- Example 326:22
- Example 430:14
The Market for Loanable Funds
32m 55s
- Intro0:00
- Lesson Overview0:05
- Loanable Funds Market0:57
- Loanable Funds Markets1:17
- Savers1:46
- Borrowers2:26
- Equilibrium in the Loanable Funds Market3:27
- Equilibrium in Loanable Funds Market3:45
- Shifts of Demand for Loanable Funds5:47
- Changes in Perceived Business Opportunities5:59
- Changes In the Government's Borrowing7:10
- Shifts of the Supply of Loanable Funds8:35
- Changes in Private Savings Behavior8:44
- Changes in Capital Inflows10:24
- Inflation and Interest Rates11:07
- Real Interest Rate12:01
- A Good Hedge Against Inflation14:21
- Fisher Effect14:54
- Increase in Supply of Loanable Funds15:38
- Interest Rate in the Short Run16:57
- Fall in Interest Rates17:00
- Increase in the Money Market17:14
- Short Run17:26
- Interest Rate in the Long Run18:16
- Increase in Money Supply in Long Run18:41
- Supply of Loanable Funds19:42
- Supply and Demand for Loanable Funds Determines the Interest Rate20:12
- Example 120:20
- Example 223:40
- Example 328:18
- Example 429:29
Section 5: Inflation, Unemployment, and Stabilization Policies
Budget Deficits & the National Debt
40m 8s
- Intro0:00
- Lesson Overview0:07
- The Budget Balance1:20
- Formula1:54
- Rule of Thumb4:07
- Generally, Contractionary Fiscal Policies Will Increase the Budget Balance6:02
- Cyclically Adjusted Budget Balance9:35
- Estimate if Real GDP was Equal to Potential Output9:56
- Economic Expansion10:13
- Contractions10:44
- Should the Budget Be Balanced?11:35
- Balanced Budget Amendment13:00
- Restricts a Country's Ability to Run a Budget Deficit During Recessions13:40
- National Debt15:50
- Problems of a Rising Government Debt16:15
- Crowding Out Effect16:28
- Today's Deficits Increases the Public Debt18:17
- Historical Debt-GDP Ratio20:33
- Trends in Debt-GDP Ratio24:03
- U.S. Trends to Run a Budget Deficit During War24:05
- U.S. Total Debt-GDP Ratio Exceeded 100% During Relative Peace24:30
- Debt Grows Larger with Projected Budget Deficits Continuing25:06
- Implicit Liabilities26:35
- Spending Promises Made by the Government26:45
- Three Largest Implicit Liabilities of the American Gov27:27
- Net Present Value of Debt28:26
- Example 129:25
- Example 233:40
- Example 335:28
- Example 437:59
Inflation & Unemployment
32m 24s
- Intro0:00
- Lesson Overview0:09
- The Short-Run Phillips Curve1:05
- High Unemployment Rate1:24
- Low Unemployment Rate1:49
- Short-Run Phillips Curve Graph3:20
- Inflation Expectations6:24
- Increase in Expected Inflation6:47
- Expectations Based on Experience6:58
- Inflation and Unemployment in the Long Run7:39
- Most Economists Believe There is No Trade-Off Between Unemployment and Inflation7:48
- Nonaccelerating Inflation Rate of Unemployment NAIRU8:27
- Long-Run Phillips Curve9:01
- Long-Run Phillips Curve and NAIRU9:24
- The Costs of Disinflation12:03
- Harder to Bring Inflation Down Than to Increase It13:10
- Disinflation13:38
- Long-Term Benefit of Controlling Double-Digit Inflation14:13
- Announcing Policy of Disinflation14:55
- The Costs of Deflation15:21
- Deflation is the Fall in the Aggregate Price Level15:53
- Why is Deflation Bad?16:35
- Lenders Gain and Borrowers Lose17:31
- Effect of Deflation17:43
- Japan's Liquidity Trap of the 1990s19:30
- Liquidity Trap22:13
- Japan Example22:58
- Example 123:48
- Example 225:14
- Example 327:05
- Example 428:31
Section 6: Economic Growth and Productivity
Economic Growth
32m 28s
- Intro0:00
- Lesson Overview0:07
- Real GDP Per Capita1:17
- Real GDP Per Capita1:23
- How Do You Find the Real GDP Per Capita1:34
- Many Countries Have Lower Standard of Living Than U.S.A. 100 Years Ago4:29
- Long Run Economic Growth5:36
- Growth Rate6:00
- Physical Capital8:09
- Human Capital8:27
- Technology9:17
- Economic Growth on a PPF Graph10:37
- Investment vs. Consumer Good15:31
- Long-Run Growth and the LRAS Curve19:08
- Short-Run to Long-Run: Example 121:07
- Short-Run to Long-Run: Example 224:01
- Example 126:09
- Example 227:33
- Example 329:48
- Example 431:09
Balance of Payments
36m 56s
- Intro0:00
- Lesson Overview0:06
- Balance of Payments Account1:01
- Current Account1:09
- Sales and Purchases of Goods and Services1:54
- Factor Income2:58
- International Transfers3:48
- Sales, Factor and Transfers4:13
- Financial Account7:58
- Official Asset Sales and Purchases8:29
- Private Sale and Purchases of Assets9:01
- Financial Account10:19
- Current Account = -Financial Account12:10
- Formula12:30
- What a Country's Financial Account Measures13:37
- Financial Account and Loanable Supplies14:30
- Foreign Direct Investment14:40
- Exchanges Rates15:20
- Assume Equilibrium Interest Rate is 4%15:30
- The Loanable Funds Model: Example 115:50
- The Loanable Funds Model: Example 216:49
- GDP, GNP, and the Current Account21:33
- Basic Equation for National Income Accounting21:45
- Why Doesn't the National Income Equation Use the Current Account as a Whole?22:23
- Gross National Product Includes International Factor Income22:54
- Why Do We Use GDP and Not GNP23:03
- Global Savings Glut24:07
- U.S. Entered in a Massive Current Account Deficit24:14
- U.S. Takes in a Lot of Capital Inflow from the Rest of the World24:50
- How Did This Happen?25:06
- Example 127:05
- Example 228:10
- Example 330:43
- Example 433:01
Section 7: Open Economy: International Trade and Finance
Foreign Exchange Market
40m 31s
- Intro0:00
- Lesson Overview0:06
- Understanding Exchange Rates1:19
- Items Produced in a Country Will be Paid for In That Country's Currency1:24
- Foreign Exchange Market2:12
- The Foreign Exchange Market: Dollar Example5:33
- The Foreign Exchange Market: Euro Example9:44
- Inflation and Real Exchange Rates15:34
- Real Exchange Rates16:32
- Current Account Responds Only to Changes in the Real Exchange Rate17:01
- Purchasing Power Parity18:02
- Concept for Analyzing Interest Rates18:10
- Purchasing Power Parity Between Two Countries Currencies18:24
- In Theory, You 'Should' Be Able to Buy $100 Worth of Stuff in Any Country19:01
- Burgernomics21:03
- Big Mac Index21:13
- Not the Best Measure21:54
- U.S. Cost of Big Macs22:38
- Overvalued Big Macs23:10
- Undervalued Big Macs24:09
- Chart: Buns For Your Buck25:12
- Floating vs. Fixed Exchange Rate Regime26:31
- Fixed Exchange Rate26:40
- Floating Exchange Rate27:50
- Exchange Rate Dilemma29:40
- Fixed Rate Regimes Give Predictability to Trade29:44
- Every Choice Has a Cost30:30
- Example 132:21
- Example 233:55
- Example 335:25
- Example 437:30
Section 8: AP Test
Major Graphs Review
21m 51s
- Intro0:00
- Lesson Overview0:08
- The Scenario1:07
- The Inflationary Gap3:27
- The Money Market Graph7:51
- Higher Interest Rate = Decreased Investment14:52
- Exchange Market Graph17:32
AP Practice Exam: Multiple Choice
46m 2s
- Intro0:00
- Multiple Choice 10:30
- Multiple Choice 26:21
- Multiple Choice 37:33
- Multiple Choice 49:54
- Multiple Choice 512:04
- Multiple Choice 614:49
- Multiple Choice 717:11
- Multiple Choice 819:11
- Multiple Choice 920:17
- Multiple Choice 1022:55
- Multiple Choice 1124:25
- Multiple Choice 1227:56
- Multiple Choice 1329:08
- Multiple Choice 1430:00
- Multiple Choice 1531:26
- Multiple Choice 1632:57
- Multiple Choice 1733:44
- Multiple Choice 1836:12
- Multiple Choice 1938:11
- Multiple Choice 2040:40
- Multiple Choice 2142:55
AP Practice Exam: Free Response, 2012
23m 14s
- Intro0:00
- Free Response 10:10
- Free Response 211:19
- Free Response 317:05
AP Practice Exam: Free Response, 2013
22m 39s
- Intro0:00
- Free Response 10:14
- Free Response 29:56
- Free Response 315:34
AP Practice Exam: Full-Length Multiple Choice
1h 16m 21s
- Intro0:00
- Multiple Choice 10:19
- Multiple Choice 21:09
- Multiple Choice 32:34
- Multiple Choice 43:19
- Multiple Choice 54:36
- Multiple Choice 65:54
- Multiple Choice 77:08
- Multiple Choice 88:37
- Multiple Choice 99:36
- Multiple Choice 1010:29
- Multiple Choice 1111:57
- Multiple Choice 1212:52
- Multiple Choice 1314:09
- Multiple Choice 1416:52
- Multiple Choice 1519:14
- Multiple Choice 1620:48
- Multiple Choice 1721:46
- Multiple Choice 1822:57
- Multiple Choice 1924:20
- Multiple Choice 2026:09
- Multiple Choice 2127:02
- Multiple Choice 2228:10
- Multiple Choice 2328:52
- Multiple Choice 2429:36
- Multiple Choice 2530:24
- Multiple Choice 2631:31
- Multiple Choice 2732:44
- Multiple Choice 2833:39
- Multiple Choice 2935:40
- Multiple Choice 3037:02
- Multiple Choice 3138:10
- Multiple Choice 3238:49
- Multiple Choice 3339:40
- Multiple Choice 3440:30
- Multiple Choice 3541:50
- Multiple Choice 3642:19
- Multiple Choice 3744:37
- Multiple Choice 3846:09
- Multiple Choice 3948:33
- Multiple Choice 4049:20
- Multiple Choice 4150:24
- Multiple Choice 4252:47
- Multiple Choice 4353:54
- Multiple Choice 4455:15
- Multiple Choice 4556:47
- Multiple Choice 4657:48
- Multiple Choice 471:00:37
- Multiple Choice 481:01:40
- Multiple Choice 491:02:41
- Multiple Choice 501:03:17
- Multiple Choice 511:04:09
- Multiple Choice 521:05:04
- Multiple Choice 531:06:20
- Multiple Choice 541:08:32
- Multiple Choice 551:09:07
- Multiple Choice 561:09:50
- Multiple Choice 571:11:26
- Multiple Choice 581:12:38
- Multiple Choice 591:13:19
- Multiple Choice 601:14:36
Loading...
This is a quick preview of the lesson. For full access, please Log In or Sign up.
For more information, please see full course syllabus of AP Macroeconomics
For more information, please see full course syllabus of AP Macroeconomics
AP Macroeconomics The Definition & Time Value of Money
Lecture Description
In this lesson, our instructor Jibin Park gives an introduction to the definition and time value of money. He discusses what money is, the roles of money, the types of money, m1 and m2, and present and future value.
Bookmark & Share
Embed
Share this knowledge with your friends!
Copy & Paste this embed code into your website’s HTML
Please ensure that your website editor is in text mode when you paste the code.(In Wordpress, the mode button is on the top right corner.)
×
Since this lesson is not free, only the preview will appear on your website.
- - Allow users to view the embedded video in full-size.
Next Lecture
Previous Lecture
2 answers
Last reply by: Luke Park
Wed Apr 4, 2018 8:45 PM
Post by Luke Park on April 2, 2018
I'm not sure if this is comepletely relevant, but if money decreases in value over time, why do antiques increase in value over time? Does it have something to do with commodities?
1 answer
Fri Aug 28, 2015 11:52 AM
Post by Jim Tang on August 28, 2015
what is a lump-sum of money?
also, the challenge i think can be solved by nothing that 2^10 is about 1000, so 2^50 is about 10^15. but you have to move the decimal to the left two places, so around the order of 10^13. then, you can guesstimate.