By offering both credit and financing through its GMAC division, General Motors is trying to help consumers
A)expand future buying power at the expense of current buying power.
B)expand disposable income at the expense of discretionary income.
C)expand current buying power at the expense of future buying power.
D)expand both disposable income and wealth.
E)decrease both disposable and discretionary income.

Question

Quizplus · Accepted Answer

By offering both credit and financing options, GM is allowing consumers to borrow money in order to increase their current buying power. However, this comes at the expense of future buying power, as consumers will have to pay back the borrowed money with interest. Therefore, option C is the best choice.

By Offering Both Credit and Financing Through Its GMAC Division