Are outstanding credit card balances counted as part of the money supply?
A. Yes; they are used to purchase things, and therefore, they are included in the money supply figures.
B. No; money is an asset, while the credit card balances are a liability. Thus, they are not included in the money supply figures.
C. Partly; credit card balances of $100 or less are included in the M1 money supply, but the money supply figures do not include balances in excess of $100.
D. Partly; credit card balances are included in the M1 money supply, but not the M2 money supply.
Answer: B
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A) 9 B) 7 C) 5 D) 3
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a. in. b. out. c. not at all. d. Not enough information is provided to answer the question.
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Refer to the above figure. An unregulated natural monopolist would choose
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