Economics Wisconsin

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Wisconsin Economic Standard

D.12.11
Interest Rates

Explain how interest rates are determined by market forces that influence the amount of borrowing and saving done by investors, consumers, and government officials

Economic Concepts
Interest rates ||  Credit  ||  Saving ||  Money market

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Links to Content Information

blue check mark ABCs of Figuring Interest - Describes some of the more common methods of calculating interest and how they can affect total interest payments.
blue check mark Savings - Explains savings and interest rates.
blue check mark Spending - To learn about your spending options, choose from these categories:  The Money Quiz,   Love the Idea of Owning a Credit Card?, and  Renting vs. Buying 

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Links to Lesson Plans and other Suggested Teaching Strategies

blue arrow The Credit Card Mystery - Grades 9-12. Students take a look at why credit card interest rates are so much higher than other interest rates.
blue arrow The Early 1980's: A Tough Time for Home Builders and Mortgage Bankers - Students will explain interest rates and their relation to inflation. They will also explain that one of the objectives of the Federal Reserve is to adopt policies that lead to low rates of interest.
blue arrow Look Who's Footing the Bill - An introductory WebQuest on democracy and the national debt. By working as a team, a group of students can work cooperatively to answer the question: What's so big about a $5 trillion dollar debt?
blue arrow The Wizard of Oz Visits Japan - This EconomicsMinute examines the extent to which the deflationary "wizard" can be expected to influence economic prosperity at the dawn of the twenty-first century.

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List of Curricular Materials and Learning Activities

blue push pin Focus on Economics: Civics and Government, from Economics America (search catalogue), available from Economics Wisconsin.n.  Unit3, Lesson 6:  How Can Changes in the Federal Government's Budget Stabilize the Economy? - An examination of the Business Cycle of unstable swings in a market economy and how fiscal policy changes in the spending and taxing levels of government impact the economy.  pp. 37-42 
blue push pin Focus on Economics: Personal Decision Making, from Economics America (search catalogue), available from Economics Wisconsin.. Relevant lessons: 
  • Lesson 10: Consumer Credit: Buy Now, Pay Later, and More - Through group activity, students analyze the costs and benefits of using credit cards to purchase goods and services. pp. 89-102
  • Lesson 14: Savings and Personal Investments: If You're So Smart, Why Aren't You Rich? - Students discuss four basic rules for wise investment decisions, learn about different options for saving or investing money, and evaluate the different investment options.  pp. 140-146 
blue push pin Focus: High School Economics, from Economics America (search catalogue), available from Economics Wisconsin. Lesson 20: Money, Interest, and Monetary Policy - Three simulations help students discover the effects of changes in the supply of money in the economy and how the Federal Reserve uses tools of monetary policy to adjust that amount of money. pp.187-197 
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Credit for Kids: Credit and Consumer Decision-Making by Diana Haskell, Brenda Manger, Sharon O-Connell; 1995.  Published by:  The Center for Economic Education 
McMicken College of Arts and Sciences 
University of Cincinnati 
1605 Crosley Tower, PO Box 210223 
Cincinnati, OH 45221-0223 
(513) 556-2948,  Fax (513) 556-2953

blue push pin A Penny Saved... -  Illustrates the importance of savings--how it benefits all of us--and the various types of savings instruments and institutions. Teacher's guide also available. 1994. 24pp. Available from Federal Reserve System. To find it, type "Penny Saved" (without the quote marks) in the keyword search box and click on Go.
blue push pin The Story of Consumer Credit. Explains consumer rights and responsibilities and consumer credit regulations. 2000. Available from Federal Reserve System. To find it, type "story of consumer" (without the quote marks) in the keyword search box and click on Go.

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National Content Standard 12.

    Scroll down the linked page to locate the grade 12 benchmarks.

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Email an expert

    Professor Jim Grunloh, University of Wisconsin-Oshkosh 

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Developed by 
Lynn Kirby, Ph.D.
Larry Weiser, Ph.D.