3 years ago

When household debt as a share of income is abnormally high,

1 answer:

4 0

Answer:

The correct answer is letter "D": the growth of consumption is likely to remain sluggish even as the economy begins to recover.

Explanation:

If in an economy the household debt increases it is typically caused because of long-term investments like mortgage payments. As a result, the amount of disposable money of the households will decreases which will cause consumption in the overall market will move slowly, regardless the economy is recovering or not.

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