Question

the following graph shows the average american household debt h as a function of the date d. here h(d) represents household debt as a percentage of disposable income. (a) explain the meaning of h(1975) in practical terms. o h(1975) is the average american household debt as a percentage of disposable income in 1975. o h(1975) is the average american household debt, as a decimal, in 1975. o h(1975) represents the year in which household debt was at its maximum value. o h(1975) represents the year in which household debt was at its minimum value. o h(1975) is the average american household debt in dollars in 1975. use the graph to find its value. % (b) the graph reaches a maximum value. estimate the maximum value. % estimate the year in which the maximum value occurred.

Explanation:

(a) Since \(h(d)\) represents household debt as a percentage of disposable income and \(d = 1975\), \(h(1975)\) is the average American household debt as a percentage of disposable income in 1975. Reading from the graph, the value is around 60%.
(b) By observing the graph, the maximum value of the function \(h(d)\) appears to be around 125% and it occurs approximately in the year 2005.

Answer:

(a) h(1975) is the average American household debt as a percentage of disposable income in 1975; 60
(b) 125; 2005