Answer to Question #114922 in Macroeconomics for Satyam Tiwari

Question

American middle classes found debt-free Household| A Quick Analysis of Consumer Debt Statics?

Answer 1

The American middle class is a social class in the United States which earns not less than fourty dollars. Their earning between two-thirds and double the median household income. While a debt free house hold means that one has cleared all the arrears of that house hold even if it was a mortgage. The house hold debt will decrease at an increasing rate while consumer spending increases.

In relation to that consumer debts refers to debts that are owed as a result of buying personal goods and services and even household consumption.

Since the middle class in America have debt free house-hold the consumer statics will go up