Which of the Following Most Accurately Describes Japan's Fiscal and Monetary

question 46

Multiple Choice

Which of the following most accurately describes Japan's fiscal and monetary policies during the 1990s?

• A)Both fiscal and monetary policy were expansionary.
• B)Both fiscal and monetary policy were restrictive.
• C)Fiscal policy was restrictive,but monetary policy was expansionary.
• D)Fiscal policy was expansionary,but monetary policy was restrictive.

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Definitions:

Liquid Assets

Refers to assets that can be quickly and easily converted into cash without significant loss in value.

Disposable Income

Monetary resources for household use in saving and spending subsequent to income tax deductions.

Consumption

The act of using goods and services for personal needs or wants, including basics like food and housing to luxury items.

Disposable Income

Resources allocated for household expenditure and savings after income tax expenses.