Sunday, March 29, 2015

Sunday blog Homework


  1. Out of the six videos the first one was talking about the different types of money. The first type of money is money commodity; money commodity is other types of money, other things that can be used as a form of money or pay. The second type of money is representative money; money that is linked or backed up by something, for example, a blank amour of coins and paper money equals a blank amount of gold or silver. Thethird type of money is fiat money, money that we use currently today; this money is backed up by the word of the government that it has value.
  2. The second video was talking about money market and how a graph is labled. For example how on a graph the price is always on the y axis and the quantity is always on the x axis. It also talked about how demand is downward sloping and the supply of money is verticle because the supple is not based on the interest rate or price however the demand is manipulated by the price. It also talked about how the demand shifts from right or right not up or down.
  3. The third graph talks about the Feds tools of money policy. About how there is expantionary and contractionary policies. How one is easy money and the other is tight money and how RR creates excess reserves and that creates loans. Also when the discount rate increase it is a discouragment.
  4. Video fourth talked about loan able funds and how saving aren't always leakage because the supply of loanable funds depends on them. It talked about how in this graph supply crosses demand. Supply comes from the amount of money people have in banks saved. And finally how the graph is the same except for the fact that you would add loanable funds and the supply is not verticle.
  5. The money creation, how banks create money. The money multiplier and  how banks create money by loan able funds. How RR is the % of money that has to be kept as cash. And the equations and how to work out theses problems were also explained in this video.
  6. This video talked about deficient spending. The money market borrows money and increase the demand for money. The mass of the US debt is within our own country. Loan able funds change demand because the government is running a deficit and demanding more loan able funds which increases in government spending increases aggregate demand which increases the price level and GDP.