ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Between 1991 and 2001, Japan’s economy entered a deep recession. GDP declined, and borrowers became insolvent. Big banks failed, including the Hokkaido Takushoku Bank, the Long-Term Credit Bank of Japan, and Nippon Credit Bank.
Detailed explanation-2: -It is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP). It is the world’s second-largest developed economy. Japan is a member of both the G7 and G20. According to the World Bank, the country’s per capita GDP (PPP) was at $49, 000 (2022).
Detailed explanation-3: -US and Japan facing debt difficulties At the same time, the Bank of Japan has downgraded its economic outlook, shortly after Finance Minister Shunichi Suzuki warned that the country’s finances are becoming increasingly precarious.
Detailed explanation-4: -By the late 1980s, the Japanese economy experienced an asset price bubble of a massive scale. The bubble was caused by the excessive loan growth quotas dictated on the banks by Japan’s central bank, the Bank of Japan, through a policy mechanism known as the “window guidance".