Determine the effects credit cards has on the quantity


Problem

Suppose that we allow for the fact that cash can be stolen, but assume that a stolen credit card cannot be used, as it is instantly cancelled, so no one steals credit cards. Determine the effects this has on the quantity and price of credit card balances, the demand for money, and the price level. Explain your results.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine the effects credit cards has on the quantity
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