When household debt as a share of income is abnormally high,
A) rapid growth of consumption is likely to lead the recovery.
B) the growth prospects of the economy will be excellent because high household debt is the key to a strong economy.
C) the growth of consumption is likely to remain sluggish even as the economy begins to recover.
D) consumers will be in a strong position to deal with irregular expenses.

Question

Quizplus · Accepted Answer

When household debt as a share of income is high, it indicates that consumers are carrying a heavy debt burden, which can limit their ability to spend and lead to sluggish consumption growth even as the economy begins to recover.

When Household Debt as a Share of Income Is Abnormally