In 2006,the Bank of Japan
A) began to scale back its expansionary policy, only to return to an expansionary policy following the financial crisis.
B) began to implement a more aggressive expansionary policy, only to scale it back following the financial crisis.
C) began to implement a more aggressive contractionary policy, and pushed it even harder following the financial crisis.
D) began to scale back its contractionary policy, only to return to a contractionary policy following the financial crisis.

Question

Quizplus · Accepted Answer

In 2006, the Bank of Japan started to scale back its expansionary policy as the economy showed signs of recovery. However, following the global financial crisis in 2008, the Bank of Japan, like many other central banks around the world, returned to an expansionary policy to stimulate the economy.