Critical Reasoning (CR) | Re: Household indebtedness, which some theorists regard as causing recessi

Understanding the argument - 
­Household indebtedness, which some theorists regard as causing a recession, was high preceding the recent recession, but so was the value of assets owned by households. - Background. Most importantly, when the author says, "which some theorists regard as causing recession," we should expect the alternative view. And "but" presents the first such objection to the views of these "some theorists."

Admittedly, if most of the assets were owned by quite affluent households, and most of the debt was owed by low-income households, high household debt levels could have been the cause of the recession despite high asset values: low-income households might have decreased spending in order to pay off debts while the quite affluent ones might simply have failed to increase spending. - The author explains that had some theorist's "belief" been true, what would the reasoning have looked like? 

But, in fact, quite affluent people
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Statistics : Posted by Raman109 • on 18 Feb 2020, 03:09 • Replies 2 • Views 5057

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