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Money supply and demand impacting interest rates | Macroeconomics | Khan Academy

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Isn’t the money supply line vertical?
Comment from : @jessiemayfield6749

Thanks 😊👍
Comment from : @suliyatfolake4380

Is the interest rate here real interest rate or nominal interest rate?
Comment from : @sindywang7482

Sal, What happens when the money supply and intrest rates go up at the same time? This is what's happening now
Comment from : @chuck50a

RENTING MONEY I love it!!!!!
Comment from : @messijr5145

Why is money supply not perfectly inelastic?
Comment from : @bobo0991

This is amazing Awesome
Comment from : @shuaiyang5508

Well why on earth is the Fed only lending the government 6 or 7 trillion? Why not 500 trillion?
Comment from : @biulaimh3097

amazing video thanks
Comment from : @Balance43

Nice explanation!!
Comment from : @elisauldiaz

Best explanation thus far 🙌🏽
Comment from : @thandekajwara9990

Central Branks?-lmao jk great vid
Comment from : @umerrehman8784

Thanks!
Comment from : @andreanicole7035

Just to clarify In the second curvebrPeople are saving less, thus supply drops That’s clearbrHowever I don’t understand why as you said, when people save less, they borrow more? (And push up demand for money) brbrHow does this work in real life? brAs I think, if I save less, it means I am using more money for consumption and thus I need for borrow less?
Comment from : @gorillaofjohn15

So if the interest and money supply is fixed what does an increase in government expenditure by selling bonds to the public do?
Comment from : @rojamillerover

Ok The end of this video is the most important part Finally I understood why we deal with interest rate as "the price of money" That's because if supply for demand changes, the price of this must change too, in this case, interest ratebrSo, about interest rate is enough understand what affect supply and demand for money We are specifically talking aboug big consumers of money: governments, banks, consumer's sentiment, ? something more?brThat's what I learnt watching this video Thank you so much! Congratulations😆
Comment from : @oliveiraphael

Q axis; wouldn't that be $ 'available' to lend?
Comment from : @6789uiop

Hi, could you please explain why in the 2nd supply & demand scenario, you took the demand curve to the right as if it was increasing but you said that since saving is going down people are gonna borrow less money?
Comment from : @robertfaurisson6951

Sooo helpful
Comment from : @naaakuokor63

Central branks
Comment from : @danielrnuttall

Brilliant Bravo Bravisimo
Comment from : @nolisto1

Thank you Khan's academy
Comment from : @vrinda888

why didn't you use the usual vertical curve for the money supply?
Comment from : @camilleanneDT

if consumer borrowing is less, how can that bring demand up? Your second graph is a bit confusing Can you clarify that?
Comment from : @medicineherbal8421

thanks it was really helpful (:
Comment from : @Sam91

JazakAllah
Comment from : @SanaHasanArabianPearl

For each of the following scenarios, tell a story and predict the effects on the equilibrium levels of aggregate output (y) and the interest rate (r) :brB During the summer of 2003, Congress passed and President George W Bush signed the third tax cut in 3 years Many of the tax cuts took effect in 2005 Assume that the Fed holds Ms fixed pdf
Comment from : @kimsrengpajerosreang2620

For the 2nd graph, I get that the supply of money will decrease (shift left) and increase interest rates, but how would that increase in rate INCREASE demand of money? People will borrow less, yes - and so interest rates should reflect that by DECREASING (as people aren't demanding loans/money as much)brbrPls halp
Comment from : @aceyboy

Nice !brAmen !
Comment from : @grrrrrr911

Very helpful! Thank you!
Comment from : @anumhussain8473

for the 2374687634827643th time, Khan Academy saved my life :)
Comment from : @fernandokleinrocha1

i think "less" should have been "more" they save less cos they need to spend it, and MORE borrowing could help with that
Comment from : @tareek72

whats a central brank? jk thanks for the vid it helped ;)
Comment from : @toddaillon

Consumer savings goes less when there is inflation In such case well to do consumers will save less while those on the borderline will have to borrow now to meet their needs So we will have an aggregate effect of middle class saving less and poor borrowing more HTH
Comment from : @StudentKats

Thank you very much, explains really clearly!
Comment from : @jewishunited

@KaninoWorldIsThis When consumers save less, it's usually for the intention of using that would-have-been-saved money to buy goods Or, instead of saving money, they decide to spend it on consumer goods, shifting the demand curve outwards
Comment from : @ITogoPogoB