According to Paul Krugman,during the past decade Japan's macroeconomic policy should have incorporated which of the following?
A)stimulatory monetary policy
B)stimulatory fiscal policy
C)monetization of the debt by the central bank
D)All of the above

Question

Quizplus · Accepted Answer

According to Paul Krugman, during the past decade, Japan's macroeconomic policy should have incorporated stimulatory monetary policy, stimulatory fiscal policy, and monetization of the debt by the central bank. This is because Japan has been struggling with deflation and sluggish growth, and conventional policies such as lowering interest rates and government borrowing have not been effective. Therefore, Krugman advocates for a combination of monetary and fiscal stimulus, along with monetization of the debt if necessary, to boost aggregate demand and stimulate economic growth.

According to Paul Krugman,during the Past Decade Japan's Macroeconomic Policy