You Have a New Credit Card with a Promotional 0

question 45

Multiple Choice

You have a new credit card with a promotional 0% APR for a limited time. The card requires a minimum payment of 4% of the balance. You feel you can afford to pay no more than $150 each month. How much can you afford to charge?

• A)$3750
• B)$5600
• C)$1800
• D)$7200

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Definitions:

Economy

The system or range of economic activities in a region, country, or community, including the production, consumption, and trade of goods and services.

Self-correct

The ability of an economic market to adjust and return to equilibrium without external intervention.

Aggregate Demand Curve

Represents the total spending on domestic goods and services at various price levels, showing the inverse relationship between price level and demand.

Short-run Aggregate Supply

Represents the total amount of goods and services that producers are willing and able to supply at different price levels in the short-term, considering some prices are sticky.