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:

Security

Measures taken to protect a person, organization, or asset from harm or unauthorized access, encompassing physical, digital, and financial aspects.

Except

Used to exclude something or someone from a statement or category; indicates an exception.

Power-oriented

Describes a focus on gaining and maintaining influence, control, or authority over others or situations.

Leadership

The ability to guide, inspire, and influence others towards achieving common goals.