When the Nominal Interest Rate Increases,the Quantity of Credit Card

question 10

Multiple Choice

When the nominal interest rate increases,the quantity of credit card services

• A) increases.
• B) decreases.
• C) stays constant.
• D) moves in unpredictable ways.

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Definitions:

Rents

Payments made for the use of property or land, or in economic theory, the excess returns to a factor of production over its opportunity cost.

Finite

Something that has limits or bounds; having a definite end or duration.

Profit Rate

The ratio of profits generated to the amount of capital or investment, indicative of the financial health and efficiency of an entity.

Demand And Supply

Fundamental economic concepts that describe the amount of a product or service available for sale (supply) and the desire of buyers for it (demand), influencing its price.