Loanable Funds Supply and Demand Activity

Grade Levels
9th - 12th
Formats Included
  • PDF (16 pages)
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Description

Build your students' comprehension of supply and demand for loanable funds with this engaging and multi-faceted activity!

This activity includes:

1) This "Loanable Funds Supply and Demand" Activity includes 4 parts. It begins with a colorful graphic organizer that asks your students to define loanable funds demand and explain the factors that contribute to the inverse relationship between the real interest rate and quantity of loanable funds demanded. Students will also practice calculating the real interest rate in the economy from the nominal interest rate and inflation rate data provided. Next, students will use data and graphs provided to calculate the change in the quantity of loanable funds demanded as the real interest rate changes, leading to a downward-sloping loanable funds demand curve. Next, students will be asked to identify the 4 components of loanable funds demand and will use their knowledge and a collection of data provided to analyze changes in the components of loanable funds demand, predict the effects of those changes, and then graph the changes on a loanable funds demand graph provided. The activity continues with a graphic organizer that asks your students to define loanable funds supply and explain the factors that contribute to the positive relationship between the real interest rate and quantity of loanable funds supplied. Next, students will use data and graphs provided to calculate the change in the quantity of loanable funds supplied as the real interest rate changes, leading to a upward-sloping loanable funds supply curve. Next, students will be asked to identify the 4 components of loanable funds supply and will use their knowledge and a collection of data provided to analyze changes in the components of loanable funds supply, predict the effects of those changes, and then graph the changes on a loanable funds supply 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.

This activity can also be found in a bundle paired with a PowerPoint, Keynote and PDF version of a fully customizable lecture found here:

The Loanable Funds Market Bundle

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 4.7 - The Loanable Funds Market" video lecture, which can be found here:

Unit 4.7 - The Loanable Funds Market

For more of our video lectures, check out our "You/Will/Love Economics" YouTube channel and subscribe for upcoming videos:

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Flip your classroom and the way your students learn economics TODAY!
Total Pages
16 pages
Answer Key
Included
Teaching Duration
1 hour
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