This is a complete lesson plan about the relationship between savings and investment. It emphasizes the savings-investment spending identity, and it takes an in-depth look at the loanable funds market using graphs and an interactive simulation. (This lesson is part of a larger unit on The Financial Sector
THIS DOWNLOAD INCLUDES:
1) Warm Up Activity -- use the equation for GDP to prove savings equals investment.
2) PowerPoint Presentation -- contains the lecture and is a guide for all activities.
3) Note Sheet -- students fill out this note sheet during the lecture.
4) Class Activity -- students participate as savers and investors in a loanable funds market.
5) Quiz -- Assesses student understanding of the included learning targets.
6) Homework -- students determine how events affect the loanable funds market.
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) The importance of savings and investment
2) The savings-investment spending identity
3) Savings and investment in an open economy
4) The loanable funds market
5) Graphing changes in the loanable funds market
6) Crowding out
(If you would like to download one of my PowerPoint slideshows to get a feel for my style, check out my free download here
This lesson is the second 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 80 - 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.
Savings and Investment - Lesson Plan and Activities
by Nick Samsal
is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License