Final answer:
A decrease in credit card fees likely causes people to use credit cards more frequently and to spend more money due to the reduced cost of borrowing.
Step-by-step explanation:
When credit card fees decrease, it generally reduces the cost of borrowing money. This incentivizes consumers to use their credit cards more frequently because they get to enjoy the convenience and rewards (such as air miles) with lower additional costs. As per the above-equilibrium interest rate concept, credit card companies might reduce fees or interest rates to attract more business, bringing the market back to equilibrium.
Therefore, a drop in credit card fees is likely to lead to option 4) Use credit cards more frequently. As consumers perceive the borrowing costs to be lower, they may be more inclined to make purchases they would otherwise delay or avoid, leading to an increase in overall spending. This, in turn, can also indirectly result in option 1) Spend more money, as the easier access to credit can encourage consumers to make more transactions or purchase higher-priced items they covet.