๐Ÿ“ฌ
Briefings
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Economic
Data
๐Ÿงฎ
Policy
Analyzer
๐Ÿ“‹
Formula
Reference
๐Ÿ–ฉ
Calculator
๐Ÿ—‘๏ธ
Recycle Bin
โ˜• Welcome intern
Tax multiplier is NEGATIVE. Don't forget. You'll thank me. โ€” Yasmin
โš ๏ธ Remember
Money multiplier applies to EXCESS reserves, not total deposit.
๐Ÿ“ฌBriefings โ€” FedMail
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โ— Unread๐Ÿšฉ Priority๐Ÿ›๏ธ Board of Governors
FROMTOintern@federalreserve.govRE
โ€” Sent from Federal Reserve Board ๐Ÿ›๏ธ
๐Ÿ“ŠEconomic Data
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Case Data
FISCAL
๐Ÿ“ All dollar amounts in BILLIONS unless specified.
๐ŸงฎPolicy Analyzer โ€” Multiplier Workflow
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Progress
1

๐Ÿ”ง Which multiplier applies?

Read the briefing carefully โ€” what kind of policy action is this?

2

๐Ÿ“ Calculate the multiplier value

Apply the correct formula. Signs matter!

3

๐Ÿ’ต Calculate the total change

Multiply the initial change by the multiplier. Watch signs.

4

๐ŸŽฏ What's the effect on the economy?

Based on your total change, call the direction.

๐Ÿ“ŠBriefing Feedback
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โญ
Performance Review
๐Ÿ–ฉCalc.exe
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0
๐Ÿ“‹Formula Reference
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โš ๏ธ Opening this costs 10 performance points โ€” once per case!
๐Ÿ’ฐ Spending Multiplier
1 / MPS or 1 / (1 โˆ’ MPC)
Applies to government spending (G), investment (I), consumption (C), or net exports shocks. ฮ”GDP = ฮ”Spending ร— multiplier.
๐Ÿ“‰ Tax Multiplier
โˆ’MPC / MPS
ALWAYS smaller than spending multiplier (by 1). Tax CUT โ†’ GDP up. Tax HIKE โ†’ GDP down. Watch the sign!
๐Ÿฆ Money Multiplier
1 / RR (RR = reserve requirement)
Applies to EXCESS reserves, NOT total deposit. New deposit of $1,000 with RR=10% means excess = $900, ฮ”MS = $900 ร— 10 = $9,000.
โš–๏ธ Balanced Budget Multiplier
Equals 1. When ฮ”G = ฮ”T, net effect on GDP = ฮ”G. Not zero! Spending effect always dominates tax effect by exactly the policy amount.
๐Ÿ—‘๏ธRecycle Bin
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4 items ยท recently deleted

Someone on the seventh floor really doesn't know how to use a shared drive.

  • ๐Ÿ“„ Chair_Powells_secret_rate_notes.docx
  • ๐Ÿ“„ Why_Phillips_curve_not_stable_rant.pdf
  • ๐ŸŽฎ Minesweeper.exe
  • ๐Ÿ“Š MPC_estimates_definitely_correct.xlsx
โญ 100

Federal Reserve System

Board of Governors ยท Intern Workstation

๐Ÿ“ฌ
Briefings
Policy case files
๐Ÿ“Š
Economic Data
MPC, RR, deposits
๐Ÿงฎ
Policy Analyzer
4-step workflow
๐Ÿ“‹
Formula Reference
Costs 10 pts/case
๐Ÿ–ฉ
Calculator
Crunch numbers
๐Ÿ›๏ธ๐Ÿ–ฉ
Multiplier Mayhem
AP Macro ยท Multipliers
You're the new intern at the Federal Reserve Board of Governors. 5 policy briefings need multiplier analysis. Pick the right formula, crunch the numbers, call the direction. ๐Ÿ›๏ธ

๐Ÿงญ How to play

  1. Read each briefing and check the data window
  2. Pick the right multiplier (spending / tax / money / balanced)
  3. Calculate the multiplier value (signs matter!)
  4. Calculate the total change in GDP or money supply
  5. Call the direction of the effect
Internship Review
Final Performance Score