Why are U.S.housing and stock prices unlikely to rebound quickly from the recession of 2008-2009?
A) Restrictive monetary policy will place downward pressure on asset prices.
B) Lack of sufficient stimulus will decrease demand for housing and other assets.
C) It will take time to correct the mal-investment generated by the run-up in housing prices.
D) Based on Japan's experience of the 1990s,asset prices are likely to rebound quickly.
Correct Answer:
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