This is a complete lesson plan about how the supply and demand for money determines short-term interest rates. It discusses how the Federal Reserve can alter the money supply to influence the interest rate, and it explores the related concept of money velocity. It is the first of two lessons on Monetary Policy; the other lesson can be found here
. (This lesson is also part of a larger unit on The Financial Sector
THIS DOWNLOAD INCLUDES:
1) Warm Up Activity -- uses props to illustrate how the Fed alters the money supply.
2) PowerPoint Presentation -- contains the lecture and is a guide for all activities.
3) Note Sheet -- students fill out a note sheet during the lecture.
4) Class Activity -- students answer questions on equilibrium in the money market.
5) Quiz -- Assesses student understanding of the included learning targets.
6) Homework -- students calculate fictional and real-life data on money velocity.
7) Teacher Materials -- includes a detailed lesson plan, answer keys, and a "Read Me" document explaining how to use the materials included.
TOPICS FOR THE LECTURE:
1) Supply of money
2) Demand for money
3) Changes in real money demand
4) Velocity of money
5) Equilibrium in the money market
6) Different types of interest rates
If you would like to see one of my PowerPoint slideshows to get a feel for my style, check out my free download here
. To allow for Differentiated Instruction, I have included three different versions of the Note Sheet, Class Activity, Quiz, and Homework. Also, all items come with an answer key.
This lesson is the sixth day of a seven-day unit on The Financial Sector that was designed using national standards from the Council for Economic Education. It should take about 90 minutes, which is perfect for the block schedule, but it can also be easily split in half for classes that run closer to 50 minutes.
Monetary Policy I (Interest Rates) - Lesson Plan and Activities
by Nick Samsal
is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License