Because of a rise in debt in the aggregate, leverage ratios of firms

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When there is a rise in debt in the aggregate, the leverage ratio of firms will increase. Leverage ratio is a measure of the amount of debt used to finance a company's assets. A higher leverage ratio indicates that a company is more reliant on debt financing. As a result, credit-worthiness will decline as the company becomes more risky and less able to repay its debt obligations.

Because of a Rise in Debt in the Aggregate, Leverage