An argument against using credit is that it tends to smooth out consumption over the life cycle.

Name: An argument against using credit is that it tends to smooth out consumption over the life cycle.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

This statement is incorrect. The argument against using credit is not related to smoothing out consumption over the life cycle. Instead, it is related to the potential for high-interest rates, fees, and debt accumulation that can harm the financial well-being of individuals and households.

An Argument Against Using Credit Is That It Tends to Smooth