AP Economics – 3/21/19
I. Bellwork
Page 274 MC 1-5 & Page 275 FRQ #2
II. Objectives:
- Describe how the loanable funds market matches savers and investors
- Identify the determinants of supply and demand in the loanable funds market
- Explain how the two models of interest rates can be reconciled
III. Discussion Pages 276-285
A. The Market for Loanable Funds
Loanable Funds Market Practice- Macro 4.16
- The Equilibrium Interest Rate
- Shifts of the Demand for Loanable Funds
- Shifts of the Supply of Loanable Funds
- Inflation and Interest Rates
B. Reconciling the Two Interest Rate Models
- The Interest Rate in the Short Run
- The Interest Rate in the Long Run
C. Videos
- Macro 4.4- Interest Rates: Real vs Nominal Practice
- What Is the Fisher Effect?
- AP Macro – Loanable Funds – Fisher Effect
IV. Classwork
- 29.1 WS
V. Homework
- 29.2 Parts 1&2
- 4.1 Loanable Funds Parts 1&2
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