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 the U.S. government 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.

Question

Quizplus · Accepted Answer

D  E  U.S. interest rates fell as the Federal Reserve cut rates to stimulate the economy, reducing the cost of servicing debt. U.S. government debt was considered a safe haven, leading to increased demand. In 2011, Standard & Poor's downgraded the U.S. credit rating from AAA to AA+.

As a Result of the Global Financial Crisis in 2008