By offering credit and financing through its GMAC division,General Motors is trying to help consumers
A) expand future buying power at the expense of current buying power.
B) expand disposable income at the expense of discretionary income.
C) expand current buying power at the expense of future buying power.
D) expand both disposable income and wealth.
E) decrease both disposable and discretionary income.

Question

Quizplus · Accepted Answer

By offering credit and financing, GMAC allows consumers to make purchases beyond their current buying power. This means they may have to pay off debt over time, which reduces their future buying power. Therefore, this option represents expanding current buying power at the expense of future buying power.

By Offering Credit and Financing Through Its GMAC Division,General Motors