Money demand:interest rate :: Credit card usage:?

Money demand is influenced by interest rates because when interest rates are high, people prefer to save their money in banks to earn more interest rather than hold cash. Similarly, credit card usage can be compared to the availability of credit. When interest rates are low, it becomes cheaper to borrow money, encouraging people to use credit cards more often for purchases instead of using cash. For example, if a person sees that their credit card has a low interest rate, they might choose to buy a new phone using their credit card instead of paying with cash, thinking they can pay it off later. Therefore, just as higher interest rates reduce money demand, lower interest rates can increase credit card usage.