One important role the financial system plays in the economy is to collect and aggregate information because

a.Information is diffuse, and financial intermediaries, who interact with many borrowers and lenders, can price financial products based on the supply and demand that they observe.

b.There is a government mandate that financial intermediaries know the correct prices of loans and other financial products.

c.There is no way to know whether the economy is expanding or contracting without the information financial intermediaries collect.

d.Financial institutions sell this information to advertisers, which is how they earn profit.

Which of the following could cause both the demand and supply in the market for electric cars to change?

a.Researchers invent a new engine that is less expensive to produce and uses the same amount of electricity as the old engines.

b.Researchers invent a new engine that costs the same to produce and uses less electricity than the old engines.

c.Researchers invent a new engine that is more expensive to produce and uses more electricity than the old engines.

d.Researchers invent a new engine that is more expensive to produce but uses less electricity than the old engines.