Credit benefits people by: 1. lowering the equilibrium price of goods and service 2. decreasing the necessity of carrying cash. 3. reducing the demand for goods and services. 4. all of the above.

To determine how credit benefits people, let's evaluate each statement: 1. **Lowering the equilibrium price of goods and services:** - **Analysis:** Credit typically **increases** consumers' purchasing power by allowing them to buy now and pay later. This can lead to an **increase** in demand for goods and services. Higher demand, all else being equal, tends to **increase** equilibrium prices rather than lower them. - **Conclusion:** **Incorrect.** 2. **Decreasing the necessity of carrying cash:** - **Analysis:** One of the primary benefits of credit (such as credit cards) is that it reduces the need to carry large amounts of cash. This enhances convenience and security for consumers. - **Conclusion:** **Correct.** 3. **Reducing the demand for goods and services:** - **Analysis:** As mentioned, credit generally **increases** demand by enabling consumers to make purchases they might otherwise delay or forgo. Therefore, it does not reduce demand. - **Conclusion:** **Incorrect.** 4. **All of the above:** - **Analysis:** Since only statement 2 is correct, this option is **incorrect**. **Final Answer:** **2. decreasing the necessity of carrying cash.**