An article in the Wall Street Journal in early 2019 noted that “U.S. household debt rose by $32 billion to $13.54 trillion. . . . Household debt levels . . . [stand] at $869 billion above the previous peak reached in 2008.”

a. Why do households typically borrow money?

b. Would you expect to find household debt at relatively high levels at the beginning of an economic expansion or near the end of an economic expansion? Briefly explain.