How Did the Fiscal Policy Response of Japan During the 1990s

question 42

Multiple Choice

How did the fiscal policy response of Japan during the 1990s compare with that of the U.S.during the recession of 2008-2009?

• A)Both countries responded with permanent tax cuts in an effort to stimulate supply-side effects.
• B)Both countries responded with government spending programs financed by borrowing.
• C)Japan's fiscal policy was restrictive,while U.S.fiscal policy was expansionary.
• D)Japan continued to maintain budget surpluses,while the U.S.increased its budget deficits.

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