In the 1990s Japan had the lowest interest rates in the world due to a combination of
A) inflation and recession.
B) deflation and expansion.
C) inflation and expansion.
D) deflation and recession.

Question

Quizplus · Accepted Answer

Japan had a period of deflation (falling prices) and recession during the 1990s, which led to the country having extremely low interest rates. This was an attempt to stimulate the economy by making borrowing cheaper and encouraging spending, but it ultimately proved to be ineffective in reversing Japan's economic woes.

In the 1990s Japan Had the Lowest Interest Rates in the World