As a result of the deflation experienced by Japan in the 1990s:
A) many borrowers including large corporations defaulted on their debts.
B) the U.S. government borrowed more from the Chinese government.
C) the Japanese government defaulted on their debts.
D) banks made lots of profits from their loans.

Question

Quizplus · Accepted Answer

The deflation in Japan led to a period of economic stagnation where many borrowers, including large corporations, defaulted on their debts. This was a result of the decrease in asset prices and the decrease in consumer demand, leading to a decrease in income for businesses and individuals alike.

As a Result of the Deflation Experienced by Japan in the 1990s