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Fractional reserve accounting : Simple Fractional Reserve Accounti...

By: Sal Khan

How banks can actually create checking accounts under a fractional reserve system

Fractional reserve banking and the money supply.

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Currency reserves : Accumulating Foreign Currency Reserves

By: Sal Khan

How and why a central bank would build foreign currency reserves

Balance of payments. Current account. Capital account. Currency reserves and speculative attacks. This tutorial delves into how and why countries (usually their central banks) would want to keep other countries' currency in reserve. It then goes into why

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Keynesian Cross : Details on Shifting Aggregate Planned Expenditures

By: Sal Khan

Showing how a change in government spending can lead to a new equilibrium

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. We now build on our consumption function models and start to explore ideas of planned expenditures as a function of output. When plotted with the actual

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IS-LM Model : LM part of the IS-LM model

By: Sal Khan

How the theory of liquidity preference drives demand for money and the LM (liquidity preference-money supply) curve

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. In this tutorial, we begin thinking about the impact of real interest rates on planned investment and output. We then use this to help us plot the IS cur

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GDP and the circular flow of income and expenditures : Parsing Gro...

By: Sal Khan

Understanding what GDP does and doesn't measure.

Circular flow of income and expenditure. Gross domestic product. Economics can some times get confusing because one person's expenditure is another person's income which can then be used for expenditure and on and on and on. Seems very circular. It is. Th

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