Take a closer look at the loanable funds market and the graph representing how the demand and supply for loans determines the real interest rate in an economy.

Concepts

loans, macroeconomics, interest rates, monetary policy, the federal reserve system, money supply

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Additional Tags

social studies

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Instructional Ideas

• Use as a guide or aid to your own instruction, as well as a flipped classroom learning resource

Classroom Considerations

• This video is one of a series designed for AP macroeconomic students studying monetary policy and the actions of the Federal Reserve System

• This video is hosted on YouTube

Pros

• Explains all the ways that the graph, supply curve, and equilibrium can shift
• Particular emphasis given to deficit spending

Cons

• Speaker moves very quickly through material

Common Core

SL.11-12.5 RH.11-12.3 RH.11-12.4 RH.11-12.7