The "deleveraging" by consumers resulted,in part,from all but
A) reduced use of installment credit
B) reduced use of revolving credit
C) reduced supply of credit
D) looser credit conditions
E) voluntary credit restraint

Question

Quizplus · Accepted Answer

The reduced supply of credit played a role in the deleveraging by consumers. The other options all involve a reduction in the use or availability of credit, which is consistent with deleveraging, and do not directly contradict the statement about the reduced use of credit by consumers. However, looser credit conditions (choice D) would actually suggest an increase in the use of credit, which is not consistent with deleveraging. Therefore, choice D can be eliminated as a possible answer.

The "Deleveraging" by Consumers Resulted,in Part,from All but