Americans have recently accumulated record levels of credit card debt. As a result, the risk of...

Americans have recently accumulated record levels of credit card debt. As a result, the risk of bankruptcy has increased significantly for a large segment of the population. Congress decides that it is necessary to ban credit cards to protect the public from such risk. How would such a ban affect the velocity of money? Explain your answer.

Expert Solution

declaring bankruptcy grants what's called an automatic stay ,which is essentially a block on your debt to keep creditors from trying to collect .they can't deduct money from your bank account ,garnish your wages or go after any of your other assests.these are why credit cards are increasly used by credit cards.

Rahul Sunny answered 2 years ago

Edgar accumulated $7,000 in credit card debt. If the interest rate is 20% per year, and...

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Example 1: A credit card company claims that the mean credit card debt for individuals is...

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