Asked by
Pablo Machado
on Dec 16, 2024
Verified
As a result of the global financial crisis in 2008,_____.
A) U.S.interest rates fell and the cost of servicing U.S.debt decreased
B) U.S.citizens increased their purchase of foreign securities
C) U.S.chronic deficits increased and debt service costs overwhelmed the budget
D) debt issued by U.S.government entities was judged to be the safest in the world
E) there was downgrading of the nation's credit risk by the chief credit-rating agency in 2011
Global Financial Crisis
The Global Financial Crisis was a severe worldwide economic crisis that took place during the late 2000s, characterized by major failures in financial institutions, significant decreases in consumer wealth, and a sharp decline in economic activity.
U.S. Interest Rates
The rate at which interest is paid by borrowers for the use of money that they borrow from lenders, specifically within the United States.
- Understand the consequences of substantial government budget shortfalls on the economy and interest rates.
Verified Answer
CS
Learning Objectives
- Understand the consequences of substantial government budget shortfalls on the economy and interest rates.