The Substantial Increase in Household Debt Relative to Income Since

question 41

Multiple Choice

The substantial increase in household debt relative to income since the mid 1980s meant that in 2008 many households

• A) had little savings or other reserve assets for use to deal with unexpected expenditures.
• B) could safely afford to purchase larger homes because housing is always a good investment.
• C) could spend everything they earned because their interest obligations on outstanding credit were low.
• D) would be able to easily adjust their current spending if their monthly payments on adjustable rate mortgages rose.

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Definitions:

Deceit

The act of misleading or deceiving someone intentionally.

False Representation

The act of making an untrue or misleading statement about a product, service, or situation which may deceive others.

Intention of Deceiving

The deliberate act of misleading or tricking someone to gain an advantage or cause harm.

Libel

A written or published defamatory statement or representation that conveys an unjustly unfavorable impression; a form of defamation.