Note: This is post #87 in a weekly video series on basic economics.

Why do people borrow and save? How does it affect how we live our lives? And what affects the desire to borrow and save?

In this video by Marginal Revolution University, Alex Tabarrok explains the lifecycle theory of savings and how the supply and demand for loanable funds affects our decision to e either borrowers or savers.

(If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Clickhereto see other videos in the Introduction to Economics series.