Like the U.S.during 2002-2004,Japan increased the money supply significantly and pushed interest rates to low levels during the late 1980s.This policy contributed to

Question

Quizplus · Accepted Answer

Increasing the money supply and lowering interest rates can lead to upward pressure on asset prices, such as real estate, as borrowing becomes cheaper and more people are able to afford to buy. This was seen in Japan during the late 1980s, when there was a real estate bubble. The other options are not directly related to this policy. Deflation actually occurred in Japan during the late 1990s and early 2000s, and stock prices did decline during the late 1980s, but this was due to other factors such as overvalued stocks and economic downturns. Unemployment in Japan did increase in the 1990s, but this was not directly linked to the low interest rate policy of the late 1980s.