Answer to Question #51254 in Macroeconomics for bob

Question

State True, False or Uncertain. The increased availability of credit cards has resulted in an increase in the money supply.

Answer 1

First of all it is necessary to note that the money supply is the total amount of monetary assets available in an economy at a specific time. A bank loan increases the money supply. So, the increased availability of credit cards results in an increase in the money supply, because people can get loans.