Build your students' comprehension of investment demand with this engaging and multi-faceted activity!
This activity includes:
1) This "Investment Demand" Activity includes 3 parts. It begins with a colorful graphic organizer that asks your students to define investment demand and explain the factors that contribute to the inverse relationship between the nominal interest rate and quantity of investment demanded. Next, students will use data and graphs provided to calculate the change in the quantity of investment demanded as the nominal interest rate changes, leading to a downward-sloping investment demand curve. Lastly, students will use their knowledge and a collection of data provided to analyze changes in the money supply through monetary policy, and graph those changes on a money market graph provided. Students will then predict how the changes in the money market will affect investment demand in the aggregate economy and graph those changes on an investment demand graph provided.
This activity can be used in many different ways in the classroom. Students can work independently, in pairs, or this activity can be used as a jigsaw in order to facilitate a class-wide discussion about the topics discussed in the activity.
2) A detailed answer key to the lesson activity to save you time and help guide student comprehension.
If you like this activity, check out our Unit Activity Bundle that includes activities for all of the objectives in this unit.
Monetary Policy Unit Activity Bundle
Best of all, this activity aligns to our "Unit 4.4 - The Effects of Monetary Policy" video lecture, which can be found here:
Unit 4.4 - The Effects of Monetary Policy
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