During the 1970s
A)Japanese disinflation policy was not credible, but that of the United States was credible.
B)neither Japanese nor U.S. disinflation policies were credible.
C)both Japanese and U.S. disinflation policies were credible.
D)U.S. disinflation policy was not credible, but Japanese disinflation policy was credible.

Question

Quizplus · Accepted Answer

During the 1970s, the United States struggled with high inflation and its disinflation policies were often viewed skeptically by markets and economists, leading to a lack of credibility. In contrast, Japan managed to implement disinflation policies more effectively, gaining credibility in their efforts to control inflation.