The decrease in Japanese stock prices in the 1990s was most likely the result of which of the following?
A) A decrease in inflation.
B) The end of a speculative bubble.
C) Contractionary fiscal policy.
D) Contractionary monetary policy.
E) An increase in inflation.

Question

Quizplus · Accepted Answer

The decrease in Japanese stock prices in the 1990s was the result of the bursting of a speculative bubble. In the late 1980s, Japanese stock prices had surged due to excessive speculation and lending, resulting in a bubble that eventually burst in the early 1990s, causing a sharp decline in stock prices.

The Decrease in Japanese Stock Prices in the 1990s Was