The Japanese experience during the 1990s indicates that

Question

Quizplus · Accepted Answer

The Japanese experience during the 1990s showed that increases in government expenditures financed by borrowing did not effectively promote recovery. This suggests that option C is incorrect. Additionally, option D is unlikely as budget surpluses may not necessarily promote recovery. Option A is partially correct in that budget deficits may promote recovery, but the time frame given (up to two years) is not necessarily applicable to all situations. Thus, the best choice is B.

The Japanese Experience During the 1990s Indicates That