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The Japanese Experience of the 1990s Indicates That

Question 5

Multiple Choice

The Japanese experience of the 1990s indicates that


A) restrictive monetary policy during a recovery will prevent inflation and promote stable economic growth.
B) increases in government spending will promote a faster and stronger recovery from an economic recession.
C) housing and stock prices are unlikely to rebound quickly when the economy moves toward recovery.
D) large budget deficits and temporary tax cuts will stimulate aggregate demand and real output.

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