Thank you very much ma'am, I searched many videos to understand IS-LM curve and your video was very short, to the point, helpful, easy to understand 🙏 Thank you 🙂
Mam your lecture is mind blowing it's help me for preparation of my exam I think it's best video on IS-LM curve the digram help to understand it easily
Interest rates are one of the many factors that influences the economy on a macro-level. For this case, let’s assume that interest rates are low Interest rates can be thought of as the cost of borrowing. With low interest rates, people are much more encouraged to borrow funds from banks and financial intermediaries as they do not have to pay a large sum of interest back in the future. More consumers will borrow money and thus, are likely to increase their magnitude of spending. As spending on products increase, this drives upwards pressure on prices (ie. Equilibrium price is likely to increase in the short term) However, this does not capture the full story. Ordinary people are not the only agents capable of borrowing, but also corporations. With low interest rates, corporations are encouraged to borrow large amounts of money to fund capital, R&D, etc. This in the long term, may lead to improvements in supply processes and efficiency, thereby placing downwards pressure on prices (ie. Equilibrium price is likely to decrease in the long term) Thus, it is really inconclusive about the equilibrium price unless we drastically simplify our economic model to assume a free market without any intervention or external costs, as well as determining how large the effects interest rates have on demand and supply respectively. On top of that we need to question the time horizon where we want to find our equilibrium price. All of this aside, we can make demand and supply arguments for GDP. We will also assume a scenario of constant inflation rate. Demand Argument: As borrowing increases, spending is likely to increase (assuming that MPC does not fall). This will help increase the consumption component in the AD formula and thus AD increases. Due to increase in demand, the market adjusts to the excess demand by increasing quantity supplied of products, effectively increasing real GDP. Supply Argument: As firms invest borrowed funds into capital processes and improve efficiency, they are able to supply more quantity for the same amount of inputs as average costs fall via economies of scale. This increase in supply will allow firms to produce more quantity of goods.
Explain why lm curve upwards sloping? Plz explain properly with the help of diagram.. Explain the relationship between rate of intrest and Money supply .. Anyways good explanation
At particular demand and supply for money.. rate of interest is determined. If demand rises, rate of interest increases as a result. Try it with diagram.. would be easy to understand.
Good morning ma'am. I have a question that if the savings curve is upward sloping and the investment curve is downward sloping then how come the Investment curve is upward sloping in the first diagram and why aren't these lines starting form zero?
@@nvcommerceacademy then where i study this topics in advance level you r teach us in good way i'm very dumb student from 6th and pass my first year from your video only how i study those topics?
One of the best explanation of ISLM model...Thank you so much!!!!!!!!!!!
Thank you very much ma'am, I searched many videos to understand IS-LM curve and your video was very short, to the point, helpful, easy to understand 🙏 Thank you 🙂
itni saari video dekhne k baad sirf apki video se concept clear hua hai ❤️❤️
Ma'am I watched a lot of videos but your explanation was the simplest and easiest to understand
Thanks
thank you so much apne mere zindagi asaan krdi...youtube pr is se ziada asaan language r khe nhe dekhi myny
😛😛
Jindagi ya study?
dono 😋
Lecture was Very resourceful ma'am..Keep uploading more 🙏
Mam your lecture is mind blowing it's help me for preparation of my exam I think it's best video on IS-LM curve the digram help to understand it easily
Love with respect,,best explanation in a short time.
Thanks for sharing feedback..
Thank you ❤️ This video also helpful for BBA 3rd year students
Concepts cleared in brief. Thanks Mam 🙏
best explanation i found for is lm curves
Tqu very much Mam for this video 🥳😌😍
Hello Maam.
I watch 2 more video before urs they were good but u r best. Beautiful explained ❤️ thank u
Nice video
Thanks
Thnku maam i completed the whole chapter from this video🙏🙏🙏🙏
Fully understand this topic easily..thanku so much mam 👍💯
Best explanation.. superb...
Thanks 👍
❤️❤️❤️❤️ thankyou so much ma'am this video was short but upto point.
Jaihind🇮🇳
Thanks for sharing feedback
Thanku so munch mam this video is very Useful for me understand to IS -LMcurve
Very very nice video thanks
a lot 🤗🤗
Thanku Anjali ma'am
Investment=Savings clearly explained...Thanks a ton...can you pls post on Keynesian cross as well?
Very good derivation and explanation
Love from kashmir
Mam Ap Ki Video Bohat Achi Th
But Please Mind na Karwa ga Slow Bola Kara Or Urdu Translation Hr Line k Sat Bata Daya Kara
Thanks And Regards
Brilliant teaching...........
Thanks mam now it's clear to me ,,,,🥰🥰🥰
Very well explained thnku
What an explanation ma'am ❤
Thank you ma'am make more videos on macroeconomics 💖
Excellent explanation please make more videos mam
Very helpful 🌹
Very useful.
Thankyou Ma'am
very nice mam thank u & your voice is so cute
Thanks alot
Thank you so much 🙏🏾♥️
Thank you ma'am 💝
Your explanation is simplistic and lucid.
Thnk you
Brief and easy 👏
Plz make video on baumol inventory approch & tobin theory of money demand and Friedman money demand theory
Very very helpful. Thanks for this video.
Thnz ma'am what is reason of upward saving curve?
As savings increases with increase in income
Best
Nice
The equilibrium interest rate & real GDP is determined by the synthesis of product & money market?
Yes
Please explain how to write the answer?
Interest rates are one of the many factors that influences the economy on a macro-level. For this case, let’s assume that interest rates are low
Interest rates can be thought of as the cost of borrowing. With low interest rates, people are much more encouraged to borrow funds from banks and financial intermediaries as they do not have to pay a large sum of interest back in the future.
More consumers will borrow money and thus, are likely to increase their magnitude of spending. As spending on products increase, this drives upwards pressure on prices (ie. Equilibrium price is likely to increase in the short term)
However, this does not capture the full story. Ordinary people are not the only agents capable of borrowing, but also corporations. With low interest rates, corporations are encouraged to borrow large amounts of money to fund capital, R&D, etc. This in the long term, may lead to improvements in supply processes and efficiency, thereby placing downwards pressure on prices (ie. Equilibrium price is likely to decrease in the long term)
Thus, it is really inconclusive about the equilibrium price unless we drastically simplify our economic model to assume a free market without any intervention or external costs, as well as determining how large the effects interest rates have on demand and supply respectively. On top of that we need to question the time horizon where we want to find our equilibrium price.
All of this aside, we can make demand and supply arguments for GDP. We will also assume a scenario of constant inflation rate.
Demand Argument: As borrowing increases, spending is likely to increase (assuming that MPC does not fall). This will help increase the consumption component in the AD formula and thus AD increases. Due to increase in demand, the market adjusts to the excess demand by increasing quantity supplied of products, effectively increasing real GDP.
Supply Argument: As firms invest borrowed funds into capital processes and improve efficiency, they are able to supply more quantity for the same amount of inputs as average costs fall via economies of scale. This increase in supply will allow firms to produce more quantity of goods.
Sorry ma'am Please tell me how to write answer according in 10 marks
Appreciate🙏 ma'am
Explain why lm curve upwards sloping?
Plz explain properly with the help of diagram..
Explain the relationship between rate of intrest and Money supply ..
Anyways good explanation
Thnku mam
Thank you mam
Relation between income and rate of interest? And if income is more and as a result demand is more how rate of interest is increased??
At particular demand and supply for money.. rate of interest is determined. If demand rises, rate of interest increases as a result. Try it with diagram.. would be easy to understand.
@@nvcommerceacademy is income and demand both are depicted same here? If income rises will the rate of interest rise?
Yes
@@nvcommerceacademy mam why didn't you take saving curve line from its origin in diagram of IS derivation
The explanation is w.r.t closed economy??
Yes
👍
Thanku mam 🙏
ML jhingan 👍
Tq mam
thanks mam
Thank you mam.. 🙏
Mam why fall in interest level increases investment level
Bcz we easily get funds on cheap rate of intrst... low interest burden provokes investors to invest...!!
@@nvcommerceacademy thanks mam for quick response
Thank you Ma'am, make more videos on macroeconomics topics ☺
Ma'am please make videos on classical and Keynesian model economy 😊
Some videos are already uploaded regarding these topics...
Very good explanation.....mam are you from gndu?
No
Mam please explain marginal efficiency of capital
MEC is difference between expected income less interest charges...!!
Expected rate of return - cost of capital
Good morning ma'am. I have a question that if the savings curve is upward sloping and the investment curve is downward sloping then how come the Investment curve is upward sloping in the first diagram and why aren't these lines starting form zero?
Reason being neither investment nor saving originates from zero level in an economy
Due to presence of autonomous investment and dissaving...
@@nvcommerceacademy and what about investment curve?
Are you asking for IS curve?
@@nvcommerceacademy if investment is not autonomous then what will be the graph of investment curve
13:23 and 13:25 maam I'm stuck on that could'nt understand the lines you drawn on various income
Hopefully your doubt would be cleared
Mam aise video kese banate hein.. Aapse pehele bhi pucha tha.. Me kisi aur course ki bnani he.. Aapka competition nhi badaunga
Do we have video of is im agreegate demand video?
Yes.. already uploaded
NICE BUT CAN YOU PLEASE BE MORE EXPLANATORY AS IN FIRST TIME ECONOMIC TERMS ARE NOT EASILY CATCHY REST IS GOOD
For this topic, knowledge of baaic economics is required…!!
Kindly explain effect of fiscal and monetary supply on IS curve
Do you still want this topic ?
iss ke next part kaha hai?
Only general topic is covered here.
@@nvcommerceacademy then where i study this topics in advance level you r teach us in good way i'm very dumb student from 6th and pass my first year from your video only how i study those topics?
Make your way of speaking more clear
Seriously
Mam how do you make video...
Through mobile camera
the video image is too poor, you need to fix it more
Mam do u have any notes ?
Yeah…
@@nvcommerceacademy I want
Agr mujhe koi doubt ho to kaise aapse puchungi?
Email your query...
Ok ma'am.... What is your email id??
anjali999jain@gmail.com
Ma,am ap k charan kidhar he🙏🙏🙏
Thank you ma'am 😊