Show Me the Money! An Object Lesson in Which Students Actively Learn Money Supply Changes
7 Pages Posted: 20 Mar 2008
Date Written: March 4, 2008
The author describes a classroom activity in which macroeconomics principles students actively learn how banks create money by making loans and how changes in the required reserve ratio impact the money supply. The instructor uses game pieces and money from the well known Monopoly® board game as object lessons. Students visually associate the objects with the money supply. Active role play engages the students as they calculate the increasing money supply caused by their actions. The activity can be completed in one class period and includes discussion questions.
Keywords: M1, money supply, required reserve ratio
JEL Classification: A20, A21, A22, E00, E40, E50, E51
Suggested Citation: Suggested Citation