Why are credit cards not considered part of the money supply?
Credit cards lengthen the period of time between when some good or service is purchased and when it must be paid for with some part of M1 . Credit card payments do not end the transaction. The issuer of the credit card will want payment, usually by check, for the amount of the purchase. Additionally, there is no specific amount of credit card value. Is it the size of credit limits or the available credit or the credit card balances? Finally, you cannot transfer ownership of a credit card as payment for some transaction.
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In the recent Global Economic Crisis, the negative wealth effect caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
North (1974) finds evidence to suggest that the iron industry was equally dependent on the railroad and iron stove industries for sales revenue at one point in time
Indicate whether the statement is true or false
What would you expect the cross price elasticity of iPods and online music downloads? Explain your answer
What will be an ideal response?
Corporate taxes are levied on the profits of all firms.
Answer the following statement true (T) or false (F)