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Based on Japan's Experience During the 1990s,are Fiscal Stimulus Packages

Question 31

Multiple Choice

Based on Japan's experience during the 1990s,are fiscal stimulus packages effective in promoting a quick and sustainable recovery?


A) No,Japan's fiscal stimulus did not result in strong aggregate demand and output,and the secondary effects may well have retarded recovery.
B) No,Japan's fiscal stimulus was not large enough to exert an impact on aggregate demand or real output.
C) Yes,Japan's fiscal stimulus resulted in increases in aggregate demand and real output,but higher inflation rates slowed the recovery.
D) Yes,Japan's increases in government spending resulted in corresponding increases in GDP,but high interest rates offset much of the stimulus.

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