Hellooo~

hola! This is my blog for AP-Economics! hopefully I can provide you with the needed resources to pass your next test! And hopefully i do a better job than your calculus teacher! :D

Sunday, March 29, 2015

video response

In this video i learned about the money making process. The fed makes money by making loans. I learned that the money multiplier is 1/rr (required reserve) and you need this in order to figure out how much  money is created. using this formula you multiply it by what is loaned out and you will get a huge increase in money that is created and this is because of multiple deposit expansion. But that gives you the max amount of money they can make the bank doesn't have to loan out all of the excess reserves.

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