A Simple Classroom Experiment on Money Demand

Posted: 14 Jan 2010 Last revised: 18 Jun 2017

See all articles by Xiaofen Chen

Xiaofen Chen

Truman State University - Department of Economics

Date Written: 2016

Abstract

This simple classroom experiment is designed to help students to better understand the concept and the theory of money demand. By simulating what households face in real life, the experiment allows students to reflect on the cost and benefit of holding money and understand how money demand is affected by various factors. The experiment is suitable for an undergraduate macroeconomics course at the introductory or intermediate level. The paper also presents evidence of student learning resulting from the experiment, controlling for student characteristics.

JEL Classification: A22

Suggested Citation

Chen, Xiaofen, A Simple Classroom Experiment on Money Demand (2016). Available at SSRN: https://ssrn.com/abstract=1536168 or http://dx.doi.org/10.2139/ssrn.1536168

Xiaofen Chen (Contact Author)

Truman State University - Department of Economics ( email )

100 E. Normal Street
Kirksville, MO 63501
United States
660-785-4644 (Phone)
660-785-4337 (Fax)

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