The paper will look at how much the use of credit card rises as a result of an increase in the GDP using the. The topic will use the dependent variable of the use of credit card sales. The time period that will be used will be from 2009-2012. This study will be done in the context of the US economy and all the figures used will be from authentic sources and will focus on the US economy. This will help us understand the consumer spending pattern on their credit cards when there are an overall increases or decrease in the national income levels.
The independent variable in this study will be the GDP from the period 2009 to 2012. The paper will use the regression model to tell us how each $1 of GDP increase has an impact on the use of credit cards in the economy or what is the proportion of credit card sales in the overall national income or GDP level of an economy.
Initial research has yielded success and credit card sales data have been found at this link (Banks, 2014). This means that the bulk of the work has been done. However, the time span can be increased from say 2003-2012, depending on the data availability. GDP data is very easy to find. It is available on the Federal Reserve website and various other websites.
The data used will be a combination of both the time series and regression analysis. It will try to find out the coefficient and slop of the regression line using one-on-one regression technique since we are comparing only two factors i-e the use of credit cards and the GDP of the US economy.
Works Cited:
Banks, Federal Reserve. The 2013 Federal Reserve Payments Study (n.d.): n. pag. Web.
