AP MACROECONOMICS
Money Multiplier
Deconstruct Fractional Reserve Banking. Track an initial deposit dynamically chaining through multiple bank node T-accounts via Excess Reserve lending.
AP MACROECONOMICS
Loanable Funds Market & Crowding Out
Visualize the Market for Loanable Funds. Explore how government deficit borrowing causes the Crowding Out effect by driving up the real interest rate, and how foreign capital inflows shift the supply of loanable funds.