Macro 4.4B - Expansion of the Money Supply - How does the Money Multiplier Work?

This video covers the Money Multiplier in topic 4.4 of the AP Macroeconomics Course Exam Description (CED). It explains everything you need to know about the money multiplier.

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[zenon]

Wow this unit is so theoretical. Stuff like this is what makes me miss MCQs during exams 😅

[Lou-jfrl]

I'm glad we're finally teaching ap students about the mass theft the banking system inflicts on the public via open market operations.

[amyliu]

Do you have any predictions for this year's AP Macro FRQs?

[ekhemka-xq]

Is there any case when the original amount should be included in new loans?

[myplace]

hey, where on the balance sheet are FED purchases?

[insanerobloxjumps]

is there another way to tell if the original amount should be added on? it made sense for first part but it was a bit confusing for monetary policy.

[ilikechips]

9:35 why do the bonds go into excess reserves?

[amyliu]

What does "reserves only increased by the amount of the initial deposit" at 7.23 mean? Didn't the total reserves increase by $9000 while the demand deposits initial deposit was $1000?

[amyliu]

If Terry deposits $1000 into his checking account (and that is considered as part of the M1 money supply), why is that not considered new money like how it was for the last bonds ex?

[reacher.and.ryan]

uh how could you tell if the original amount was a loan or not? try