Following the Downgrade of U

question 54

Multiple Choice

Following the downgrade of U.S.debt by Standard & Poor's in 2011

• A) other rating agencies also downgraded U.S. debt.
• B) interest rates spiked as investor's perception of risk increased.
• C) investors didn't seem to be any more concerned about default risk than before the downgrade.
• D) the U.S. implemented a plan to significantly reduce its budget deficit later that year.

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Definitions:

Demand Curve

Is a graphical representation showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Demand Curves

Graphical representations of the relationship between the price of a good or service and the quantity demanded by consumers at those prices.

Youthful Americans

Individuals in the United States who are considered to be in their youth, typically defined by a young age range.