Marginal Revolution University

Marginal Revolution University is a new approach to online education led by Professors Tyler Cowen and Alex Tabarrok of George Mason University and the popular blog, Marginal Revolution.  MRUniversity features more than 700 short economics education videos taught by leading experts. All MRU videos are freely available for professors and students to use.   Website:  https://www.youtube.com/user/MrUniversity/

Introduction to Fiscal Policy

A recession hits and the government increases spending to stimulate the economy. How is this any different from increased government spending during a boom?
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Fiscal Policy: The Best Case Scenario

Expansionary fiscal policy can help ease the pain of a recession, but it also requires smartly shifting around resources in a multi-trillion dollar economy. It’s hard to get it just right.
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The Limits of Fiscal Policy

Expansionary fiscal policy can ease the pain of a recession. But, the stimulus has to be timely, targeted, and temporary. It’s really hard to get it all right.
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When the Fed Does Too Much

In the 2000s, the Fed kept interest rates low to stimulate aggregate demand. But the cheap credit also helped fuel the housing market bubbles. We’ll look at the case of the Great Recession as an example of where the Fed did too much in one area, and perhaps not enough in others.
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Monetary Policy: The Negative Real Shock Dilemma

Imagine a negative real shock, like an oil crisis, just hit the economy. How should the Fed respond?
Decreasing the money supply will help with inflation, but make growth worse. Increasing the money supply will improve growth, but inflation will climb higher. What’s the Fed to do?!
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Monetary Policy: The Best Case Scenario

Imagine that you’re the Fed and the economy’s been doing fine. GDP growth is good, inflation is low. But then something happens. Consumer confidence drops. The economy shrinks.
What do you do?
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The Money Multiplier

When you deposit money into a bank, do you know what happens to it? It doesn’t simply sit there. Banks are actually allowed to loan out up to 90% of their deposits. For every $10 that you deposit, only $1 is required to stay put....

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Introduction to Consumer Choice

Everyday, you make tons of decisions about consumption. Your choices about what and how much of a good to buy are influenced by the laws of supply and demand. These choices are nearly endless. For example, at Starbucks, each drink is highly customizable. In fact, they offer over 80,000 combinations!...

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