When Dale buys a new computer for $1,000 using a credit card,
A) his bank account decreases by $1,000.
B) he is taking out a loan for $1,000.
C) the credit card is acting as money.
D) the money supply decreases by $1,000.
E) the credit card is performing the function of an unit of account.
B
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If a consumer is initially at an optimum, and then the price of X falls, then
A) MUX/PX > MUY/PY. B) MUX/PX < MUY/PY. C) MUX/PX = MUY/PY. D) MUX/MUY < PY/PX.
If the Fed sells government securities to the general public in the open market:
A. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will increase commercial bank reserves at the Fed B. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will decrease commercial bank reserves at the Fed C. The public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will increase their reserves at the Fed D. The public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will decrease their reserves at the Fed