Loanable Funds & Crowding Out

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.

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CCSS: Adaptable
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
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