The standard analysis of how the Japanese economy
A) entered its present period of high growth rates is that Japanese stock and real estate markets have increased at a stable rate.
B) entered its present period of stagnation is that Japanese stock and real estate markets rose far and fast in . the 1980s and then collapsed.
C) entered its present period of high inflation is that Japanese savings rates are too low.
D) entered its present period of stagnation is that Japanese saving rates are too low.

Question

Quizplus · Accepted Answer

The correct answer is B because the Japanese economy entered a period of stagnation after the asset bubble burst in the early 1990s, which was preceded by a rapid increase in stock and real estate markets during the 1980s.

The Standard Analysis of How the Japanese Economy