The level of household debt incurred over the two decades leading up to the 2008 crisis was only sustainable if:

Question

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The level of household debt incurred over the two decades leading up to the 2008 crisis was only sustainable if interest rates remained low and housing prices remained high. If interest rates were to increase and/or housing prices were to decrease, households would struggle to keep up with debt payments and defaults would increase, leading to a potential crisis.

The Level of Household Debt Incurred Over the Two Decades