Macro 6

2. Lecture 7
Macroeconomics

3. Opening
Prayer

4. Quiz
1. What are the capitals of innovation?
2. What is the most important human capital?
3. What is the di
ff
erence between an invention and
an innovation?
4. How do we create value?

5. Quizmaster
10 questions
4 answers
email to
mckytee@go.byuh.edu
1 Extra Credit Point

6. Exam 1
Friday January 27
3 hours
Testing Center
Canvas
Chapters 1-7, 9
Multiple Choice
Short Answer

7. Chapter 9
The Financial
System

8. Savers ,
Lenders,
Investors
Borrowers
Money
Market
Interest
Rate
Quantity

9. I.O.U.

15. Other People’s
Money
Leverage

16. Debt
Equity
=
Leverage Ratio

17. Leverage Ratio
Other’s Money
My Money
=

18. $50
$50
=
1
Leverage Ratio

19. $90
$10
=
9
Leverage Ratio

20. Leverage
Start with $10
Borrow $90
Buy for $100
Sell for $110
Payback $90
End with $20
Double your $10

21. Leverage
Start with $10
Borrow $90
Buy for $100
Sell for $90
Payback $90
End with $0
Lost your $10

22. Leverage
Start with $10
Borrow $90
Buy for $100
Sell for $80
Payback $90
End with -$10
Bankruptcy

23. Concepts
Opportunity Cost
Comparative Advantage
Demand and Quantity Demanded
Price Ceilings and Price Floors
GDP
GDP per Capita
Nominal vs. Real
Rule of 70s
Time Preference
Financial Intermediaries
Capitals of Innovation
Worldview
Your Country