What impact does the widespread use of credit cards have on interest rates, money demand and national income?

Money demand will fall. The widespread use of credit instruments can save money circulation.

Credit card overdraft can increase output by expanding commodity sales;

In the long run, the relationship between economic growth and the use of credit instruments is benign.

Interest rate is not directly related to the use of credit instruments, because credit card overdraft is only a small part of the use of bank funds. The reduction of currency circulation is conducive to interest rate cuts.

It is not directly related to the national economic income.

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