In August 2011,Standard & Poor's (S&P)changed Its Rating on U

question 122

Multiple Choice

In August 2011,Standard & Poor's (S&P) changed its rating on U.S.Treasury bonds from ________ based on the state of the federal government's budget deficit.

• A)"A" to "D"
• B)"A" to "AAA"
• C)"A+" to "B+"
• D)"AAA" to "AA+"

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Definitions:

Aggregate Demand

The holistic demand encompassing all goods and services in an economy, quantified at a set price level over a fixed time frame.

Permanent Income

The average annual income an individual expects to earn over their lifetime.

Fiscal Policy

A government's strategy for managing its budget, including taxation and spending decisions, to influence the economy.

Aggregate Demand Curve

A graphical representation showing the overall demand for goods and services in an economy at various price levels.