Based on Japan's Experience During the 1990s,are Fiscal Stimulus Packages

question 53

Multiple Choice

Based on Japan's experience during the 1990s,are fiscal stimulus packages effective in promoting a quick and sustainable recovery?

• A)No,Japan's fiscal stimulus did not result in strong aggregate demand and output,and the secondary effects may well have retarded recovery.
• B)No,Japan's fiscal stimulus was not large enough to exert an impact on aggregate demand or real output.
• C)Yes,Japan's fiscal stimulus resulted in increases in aggregate demand and real output,but higher inflation rates slowed the recovery.
• D)Yes,Japan's increases in government spending resulted in corresponding increases in GDP,but high interest rates offset much of the stimulus.