High family debt
A) reduces the tendency to consume.
B) encourages the tendency to spend.
C) is illegal.
D) is a prime predictor of impending inflation.

Question

Quizplus · Accepted Answer

When a family has high debt, they are more likely to be burdened with high interest payments and may have to cut back on their spending to repay their debts. This reduces their tendency to consume and can have a negative impact on the overall economy.

High Family Debt