LM Video Tutorial

Nnnn

At 5:11 it should say interest sensitivity. Not income sensitivity.

You're a god, bello

thanks .. that was very helpful !!!! looking forward for more

This is better than my ivy league professor, thanks! You should enable full screen on your website

this really helps a lot! thanks!

MacroTutor, you use illegal math. Starting at 1:31, you have: kY1 - hi, then kY2 - hi. Then at 1:43: kΔY. That's illegal addition: ΔY, before multiplication by k. That's illegal. P-E-MD-AS. Multiplication comes before addition, not after.

Nice video. Clear and sufficient.

"An increase in the national income results in an upward and outward shift of the demand for money curve. The amount of shift depends on the increase in income as well as the income sensitivity of demand for money." Can anyone help to explain the economical intuition behind it?

thanks a lot , sir 

Thanks for helping us!

yh at 4:50 its supposed to say interest sensitivity for h' instead of income sensitivity!!!

Also, a decrease in interest rates increases the money supply since banks become more inclined to give loans. This model assumes that the money supply remains constant when interest rates fluctuate.

0:45 Wait what? Higher interest rate leads people to be more inclined to invest?

Thank you very much for uploading this clip. It helped me understand this topic better and I found your explanation easy to follow. Feeling more confident about my upcoming test

@micoschwartz I read Mankiw during university years... It has "Principles of Macroeconomics", I did not like it, because it was just words, but yesterday after you recommended Mankiw, I checked "Macroeconomics", was really good, but I have already ordered Dornbusch (11e). Do you think Dornbush math as good as Mankiw (7e)?

@XYZ313313 Mankiw is more renowned.

Helpful thanks!

which textbook do you recommend most? 1. Dornbusch, Fischer, Startz, Atkins and Sparks or 2. Mankiw? only one please

thank you though.

you are too fast.

At 5.14, is the yellow text meant to say 'A decrease in the interest sensitivity of demand for real money leads to an increase in the slope of the LM curve?'

***Correction: At the 4:50 mark, when 'h' interest sensitivity is being decreased I say "income sensitivity", but it should be "interest sensitivity"

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What a clearly laid out and easy to follow video. One detail that I liked was how you presented the algebra at the end. Thanks very much!

Thank you so much