Question

The government has been considering doing away with minting pennies because they are rarely used for purchases (with most people collecting them or throwing them away). How would an economist best explain this consumer behavior?A. People who use pennies probably are not spending enough money; removing the penny will forcepeople to spend more.B. More people are using credit and debit cards, so they are not in the habit of using monetarychange.C. Prices have increased over time, and it would take far too many pennies to buy anything of value.D. Prices have increased over time, and the opportunity cost of carrying around pennies has fallen

Answer 1

Answer:

Prices have increased over time, and it would take far too many pennies to buy anything of value

Explanation:

Going by the fact that the value of pennies is fast declining, there is no longer value in holding them; hence the reason most people collecting them are throwing them away.