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Chapter 26 Savings, Investment Spending and the Financial System

Chapter 26 Savings, Investment Spending and the Financial System

Author: Matthew Lonn

Students will examine the loanable funds market and understand how it relates to interest rates.

Students will demonstrate how the demand and supply of loanable funds can increase or decrease.

Students will describe the key characteristics of the financial system and how it functions.

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Questions you should be able to answer after the lesson.

What is the loanable funds market?

What can shift the demand for loanable funds?

What can shift the supply for loanable funds?

How does our financial system support our economic structure?

What is a financial intermediary?

Chapter 26 Notes

Explanation of Loanable Funds and Crowding Out Theory

Sarcasm on the Financial System