Although credit permits more immediate satisfaction of needs and desires, it
A)does increase total purchasing power.
B)is always best to avoid credit purchases.
C)does not diminish your ability to buy more goods and services on credit.
D)has no opportunity costs attached to it.
E)does not increase total purchasing power

Question

Quizplus · Accepted Answer

Credit does not increase total purchasing power. While it allows for immediate satisfaction of needs and desires, it also comes with interest and fees, which ultimately increase the cost of the purchase. This can limit future purchasing power as more money will be allocated towards paying off debt, leaving less disposable income for other purchases.

Although Credit Permits More Immediate Satisfaction of Needs and Desires