As a result of increased use of credit cards,
A) the demand for money has decreased and the demand for money curve has shifted leftward.
B) the demand for money has decreased and there has been a movement up along the demand for money curve.
C) the demand for money has decreased and there has been a movement down along the demand for money curve.
D) the equilibrium nominal interest rate has increased and bond prices have decreased.
E) the equilibrium nominal interest rate has decreased and bond prices have fallen.

Question

Quizplus · Accepted Answer

Increased use of credit cards leads to a decrease in the demand for money as individuals are using credit instead of cash. This results in a leftward shift of the demand for money curve.

As a Result of Increased Use of Credit Cards