Which of the Following Is the Most Likely Explanation of the August

Multiple Choice

Which of the following is the most likely explanation of the August 2011 decision by Standard and Poor's to reduce its credit rating on U.S. government bonds?

A) A U.S. government debt default was not a likely outcome, but was a possibility to occur in the short term.
B) The U.S. government budget deficit was too large.
C) Strategies to reduce predicted U.S. government future budget deficits did not appear likely, making default a possibility.
D) Foreign governments were no longer willing to lend to the U.S. government.