The MPC, the MPS and the Keynesian spending multiplier

We know that an increase in spending will lead to an increase in GDP. But did you know that when one component of AD increases, it will lead to a larger overall increase in AD across the economy? This video introduces the marginal propensities to consume and save and the Keynesian spending multiplier, which allows us to estimate the degree by which a particular change in spending will impact overall GDP in an economy.

[@mahiniqbalchowdhury6032]

This was the best explanation of these topics I've ever heard. Thanks from Bangladesh.

[@ifnocanheiniken]

Thank you for clearing that cloud of confusion I had. Great video 👍🏽

[@babitasalam8949]

This is the best explanation!👍Thank you .

[@mymoodsetter]

Looks really simple in this video than reading about it. Thanks a lot.

[@SebiPoet]

yo this is hands down the clearest video I found on this, I gotta quiz tomorrow and this is godsend.

[@xWilled]

How's the quiz go

[@keitho35]

Great video thank you for uploading

[@yasmintinwala6463]

Thank you Jason for this

[@wuutchillll]

I love the explanation!! thankyou soo much! now I understand more. God Bless!

[@lindacarlen6250]

Finally I got it! THANKS👍👍👍

[@sandyexantus1179]

thank you so much for this, it was well explained, better than my professor

[@hariduttpanta4616]

Thans a lot for your clear explanation easily.

[@josesitocastorena341]

Thank you so much, you really helped me a lot.

[@greypersona4771]

thank you, this was very clear 🙏🏼

[@weatherman40]

and in 10 minutes I got it all well ..thanks for making me understand the multiplier and what it means

[@emypatrickm.7602]

I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy) I really need the answer of this

[@yildiz6720]

This video helped me alooooot Thankssss🙏🏻

[@arien_afrina3073]

thankyouu so much , very helpful 👍

[@MamoonaIqbal-lb3vi]

thank you sooooo much its very helpfuland easy to understand

[@tatyanagrossett8002]

Thank you man!!

[@allysttms]

you are my savior

[@aliuzair2706]

Thanks alot

[@kiky.mp4]

Thank you

[@dantheman4011]

Doesnt saving cause GDP to expand with a multiplier, or does it only cause Money supply to increase? Banks increase money in circulation which therefore increases GDP I would assume?

[@neugabi]

You are the best

[@ethancbaker2002]

So if the mpc increase so does the Keynesian Spending Multiplier????

[@MyteeBumbleBee]

Your presentation was like a breath of fresh air amongst so many confusing, self-serving videos! My question to you is: how would you calculate the consumption value for the $1,100 income if you only had the initial $700 consumption from which to start work?

[@emypatrickm.7602]

I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy) I really need the answer of this

[@emypatrickm.7602]

I want a help to this question am still a student: (A given country has an investment expenditure rising from $125m to $160m, and it's MPS is 40%. Calculate the final change in an economy) I really need the answer of this

[@studyiaswithvikashranjan8456]

Good difination sir🙏🙏👍👍

[@YouCanStartLateAndFinish]

Omg thank you so much

[@realdvgarg]

but if we're finding 'k' using the MPS, shouldn't we do [1/(MPS + MPT + MPM)]?

[@theibphysicsandmathsgod1000]

I think this is a simplified version. But yes, that is correct.

[@realdvgarg]

@@theibphysicsandmathsgod1000

[@nahumkemunto1003]

❤

[@Charlie-hp2oh]

TOP

[@NALWANIKASamalie]

Hmm

[@klam77]

Why do you ignore the Business sector in this analysis? For example, they always tell us the economy is three parts: Y=C+I+G. So you cover the "C" in this video but miss the business savings, ie "profits", no? Companies "spend" on cost of goods sold which come from still other companies and so on and so forth and each company "saves" it's profits....so the profit rate is also like MPS, and your analysis completely IGNORES this, no?

[@learnecon1539]

What is saved in financial institutions comes back to the simple model in form of an injection (investment) which is made by the private sector depending on the consumption behavior (MPC) of an economy.

[@veranyambura3194]

You are the best mwalimu🥹

[@babitasalam8949]

This is the best explanation!👍Thank you .