Standard & Poor's downgraded U.S. debt in 2011. One reason was that the United States had: declining tax revenues caused by runaway inflation. large budget deficits in 2009, 2010, and 2011. an unexpected decrease in the birth rate. threatened to default if Congress did not pass a balanced budget.
Standard & Poor's downgraded U.S. debt in 2011. One reason was that the United States had: declining tax revenues caused by runaway inflation. large budget deficits in 2009, 2010, and 2011. an unexpected decrease in the birth rate. threatened to default if Congress did not pass a balanced budget.
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 10SQ
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Transcribed Image Text:Standard & Poor's downgraded U.S. debt in 2011. One reason was that the United States had:
declining tax revenues caused by runaway inflation.
large budget deficits in 2009, 2010, and 2011.
an unexpected decrease in the birth rate.
threatened to default if Congress did not pass a balanced budget.
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