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:

Striations

Marks or lines formed by a linear series of slight ridges, furrows, or bands on a surface.

Involuntary Muscle

Muscle that contracts without conscious control, found in the walls of internal organs such as the stomach, heart, and intestines.

Skeletal

Relating to the skeleton, the internal framework composed of bones that supports and protects the body.

Skeletal Muscle

Muscle tissue that is attached to the bones and is responsible for voluntary movements.