Figure 4.3 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from:

An automatic stabilizer: a. increases inflationary pressure during expansions

b. Increases the drop in disposable income during recessions and increases the jump in disposable income during expansions. c. reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions. d. increases tax revenue relative to government spending throughout the business cycle. e. decreases tax revenue relative to government spending throughout the business cycle.

Savers may prefer to use financial intermediaries rather than lending directly to borrowers because financial intermediaries:

A. increase the risk of lending. B. offer higher rates of return than available elsewhere. C. have a monopoly on lending. D. reduce the cost of gathering information about borrowers.