An excess supply of loanable funds occurs when:
a. borrowers want to borrow fewer funds than savers want to supply.
b. borrowers want to borrow more funds than savers want to supply.
c. the real interest rate is lower than the equilibrium interest rate

Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?

A. People stopped investing in homes. B. Consumption decreased. C. Business investment decreased. D. Costs of production increased throughout the economy.

Income is to money as

A. short story is to novel. B. video is to digital photo. C. song is to symphony. D. entree is to dessert.