Macro Unit 4 Intro- Money and Monetary Policy (AP Macroeconomics)

This video tutorial provides an overview of macroeconomics, focusing on monetary policy. It begins by discussing the nature and functions of money, including M1, M2, and M3. The tutorial then covers banking basics, such as balance sheets and financial assets. The core of the lesson is on monetary policy, explaining how the money supply can influence the economy. It introduces the money market, the role of the Federal Reserve, and the concept of open market operations. The video concludes with an explanation of the money multiplier and the impact of interest rates on investment and consumption.

Describe the role of the Federal Reserve in controlling the money supply.

What is the difference between nominal interest rates and real interest rates?