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Entire banking system - PowerPoint PPT Presentation

Chapter 14-2

Chapter 14-2. Deposit Expansion and Multiplier. Creating Money. Assume a student deposits $1000 from their piggy bank into a bank and receives a new checking account. Changing Composition.

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Macro Midterm Review

Macro Midterm Review. What are the formulas for the spending multiplier. 1/MPS 1/1-MPC. What is the equation for MPC. MPC = Change in consumption/change in income. What is the formula for MPS. MPS = Change in savings/change in income. What is the formula for the GDP Deflator?.

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244 views • 13 slides

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Entire banking system - PowerPoint PPT Presentation

Chapter 14-2

Macro Midterm Review