Macro 17

2. Macroeconomics

3. Opening
Prayer

4. Quiz Master

7. How do banks go
bankrupt?
Liabilities vs.Assets
Deposits vs. Loans

8. Bank Failure
Deposits
Loans

9. Bank Failure
Deposits - Short Terms
Loans - Long Term

10. $500,000 at 3% for 30 years
$2,153
$2,153 at 6% for 30 years
$354,749
Value Loss: $145,251
29% loss in value

11. Illiquid
Insolvent

12. Chapter 19
International
Trade

13. https://oec.world/

14. https://oec.world/en/pro
fi
le/
country/phl#historical-data

18. $300 $300

19. The Balance of
Trade and Trade
De
fi
cits

20. All Exports = All Imports

21. Countries don’t buy
and sell
Individuals do

22. Why trade?
Value creation
Make it or trade for it

23. Trade can only take
us so far
We must have
production

24. Poverty is the rule
Prosperity is the
exception

25. Poverty has no
causes
Poverty is default

26. Specialization
Reduces time
Increases skill
Automation

27. Automation
A machine to do one
task

28. Trading 480 minutes
for 28,800 seconds
from many others
Produce one thing
Consume many

29. Improvement creates potential
Competition makes reality

30. Restricting trade
Reduces competition
Reduces productivity

31. Foreigners take
dollars because they
value dollars
Follow the Dollars

32. Why do people want dollars?
Buy American Products
Invest in America
Trade for other currencies
Hold and hope

33. Chart a Tariff
Local Supplier
Foreign Supplier
Foreigner Supplier with Tariff

34. $0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
0 1 2 3 4 5 6 7 8 9 10
Demand
Quantity
Consumer
Surplus
Producer
Surplus
($10 x 5) ÷ 2
= $25
($10 x 5) ÷ 2
= $25
Total Surplus
$50

35. Consumer
Surplus
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
0 1 2 3 4 5 6 7 8 9 10
Demand
Quantity
($14 x 7) ÷ 2
= $49
($6 x 3) ÷ 2
= $9
Total Surplus
= $58
Producer

36. Surplus
Producer