Holding Everything Else Constant, the Increased Use of Credit Cards

question 35

Multiple Choice

Holding everything else constant, the increased use of credit cards in recent years probably

• A)increased M1 velocity.
• B)decreased M1 velocity.
• C)did not affect M1 velocity.
• D)caused nominal balances to rise more slowly than real balances.

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Definitions:

Labor-Intensiveness

The characteristic of requiring a high amount of manual labor input relative to other inputs like machinery or capital.

High-Maintenance

Refers to things or people requiring a lot of time, attention, or money.

Very Labor-Intensive

Involving or requiring strenuous effort; physically demanding.

Nonrenewable Sources

energy sources that cannot be replenished in a short period, like fossil fuels.