The Loanable Funds Market Activity

Grade Levels
9th - 12th
Formats Included
  • PDF (14 pages)
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Description

Are you looking for an engaging and dynamic lesson that hits multiple intelligences and gives your students an opportunity to evaluate the loanable funds market? This is the activity you've been looking for!

This activity includes:

1) This "The Loanable Funds Market" Activity includes 5 parts. It begins with an opportunity for your students to put principles into practice by using data and graphs to investigate how changes in loanable funds supply and demand will affect real interest rates. Students will have an opportunity to analyze and graph how an increase in loanable funds supply will impact the loanable funds market market, the real interest rate, and the quantity of loanable funds supplied in the economy. Next, students will have an opportunity to analyze and graph how a decrease in loanable funds supply will impact the loanable funds market, the real interest rate, and the quantity of loanable funds supplied in the economy. Students will then have an opportunity to analyze and graph how an increase in loanable funds demand will impact the loanable funds market, the real interest rate, and the quantity of loanable funds supplied in the economy. Next, students will have an opportunity to analyze and graph how a decrease in loanable funds demand will impact the loanable funds market, the real interest rate, and the quantity of loanable funds supplied in the economy. Finally, students will use their knowledge to analyze 8 loanable funds markets and changes in loanable funds supply and demand. Students will graph the change, list the cause of the change, identify the change in real interest rates and either corporate investment spending or consumer spending, and then investigate how certain economic indicators will be effected.

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

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Total Pages
14 pages
Answer Key
Included
Teaching Duration
90 minutes
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