Macro 18

2. Lecture 18
Macroeconomics

3. Opening
Prayer

4. Quiz Master

6. Spending more than Tax
Revenue
Budget Deficit
Borrow to Spend
IOUs
U.S. Government
Bonds

7. If the the public loans money to the
government, no change in money supply.
If the Central Bank loans money to the
government, it may increase the money
supply
Inflation

8. U.S. Government
Fiscal Policy
Central Bank
Monetary Policy
I.O.U.

9. U.S. Government Bonds
IOUs
Federal Reserve Bank
Printing Currency

10. Ability to Pay
Who Should Pay the Taxes?
Benefits
Depends on your definition of
fairness

11. You
Which Country?
Everyone else
A. $30,000 $30,000
B.
C.
$60,000 $100,000
$20,000 $10,000

12. Chapter 19
International
Trade

13. https://oec.world/

17. $300 $300

18. The Balance of
Trade and Trade
Deficits

19. All Exports = All Imports

20. Countries don’t buy
and sell
Individuals do

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

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

23. Poverty is the rule
Prosperity is the
exception

24. Poverty has no
causes
Poverty is default

25. Specialization
Reduces time
Increases skill
Automation

26. Automation
A machine to do one
task

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

28. Improvement creates potential
Competition makes reality

29. Restricting trade
Reduces competition
Reduces productivity

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

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