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

Question

Quizplus · Accepted Answer

The level of household debt incurred over the two decades leading up to the 2008 crisis was mainly based on low interest rates and high housing prices. If interest rates had increased, it would have made it more difficult for households to pay off their debt, and if housing prices had declined, it would have caused many households to be in a negative equity situation where the value of their mortgage was higher than the value of their home. Therefore, option A is the most accurate answer.

The Level of Household Debt Incurred Over the Two Decades