I find it interesting that you show surplus/deficit from the supply side in LF market.......most resources I have show impact of budget balance as a demand side thing although it could be both in that CB will accept a Crowding Out response that goes either way
CB does accept it either way. The main takeaway is that R rises. You can either view government as a borrower, in which case they demand LF or you focus on public savings being part of total savings in which case they are part of the supply of LF
@@CareyLaManna Hi...im in UNIT 5 now....i was wondering if any of those videos were pending.....I usually use ACDC ...but you do a better job explaining the theory behind MACRO and go a little slower which I like.
@@andrewmacomber8345 Hey unit 5 will be uploaded and unlisted tomorrow like unit 4 was. I'll do the same thing where I'll make a playlist so they can be watched before they're public
Why does Total savings = Total investment spending? Aren't some savings borrowed to buy consumer goods like cars and vacations? All borrowed money is not invested. I was taught that only firms invest by buying capital, with the exception of households that buy brand new houses, which for some reason is counted as investment.
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I find it interesting that you show surplus/deficit from the supply side in LF market.......most resources I have show impact of budget balance as a demand side thing although it could be both in that CB will accept a Crowding Out response that goes either way
CB does accept it either way. The main takeaway is that R rises. You can either view government as a borrower, in which case they demand LF or you focus on public savings being part of total savings in which case they are part of the supply of LF
@@CareyLaManna Hi...im in UNIT 5 now....i was wondering if any of those videos were pending.....I usually use ACDC ...but you do a better job explaining the theory behind MACRO and go a little slower which I like.
@@andrewmacomber8345 Hey unit 5 will be uploaded and unlisted tomorrow like unit 4 was. I'll do the same thing where I'll make a playlist so they can be watched before they're public
Why does Total savings = Total investment spending? Aren't some savings borrowed to buy consumer goods like cars and vacations? All borrowed money is not invested. I was taught that only firms invest by buying capital, with the exception of households that buy brand new houses, which for some reason is counted as investment.