Which of the following is most likely to result from a rising household debt/income ratio?
A) Household income will rise rapidly.
B) Household consumption will fall as a share of income.
C) Households will be in a better position to deal with unexpected events that force major adjustments.
D) A larger share of household income will be required to meet interest payments on debt.

Question

Quizplus · Accepted Answer

As the household debt/income ratio rises, a larger portion of household income is typically needed to cover interest payments on the increased debt.

Which of the Following Is Most Likely to Result from a Rising