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When the Bank of Japan Reduced the Discount Rate from 5

Question 44

Multiple Choice

When the Bank of Japan reduced the discount rate from 5 percent to 2.5 percent in 1987,


A) both the demand for real estate and asset prices decreased dramatically.
B) the demand for real estate increased,but asset prices decreased.
C) the demand for real estate decreased,but asset prices increased.
D) both the demand for real estate and asset prices increased dramatically.

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