Japan's Economic Journey: From Post-War Recovery to the Lost Decades

What was one of the major reforms introduced by the Allied occupation in Japan after World War II?

• Complete militarization

• Downgrading the emperor to a figurehead role

• Establishing a monarchy

• Increasing military spending

What was the primary goal of the Dodge Plan introduced in Japan in 1949?

• To promote agricultural development

• To increase military power

• To stabilize the economy by controlling inflation

• To expand Japan's territory

What event in the early 1950s helped resume Japan's economic growth?

• The Gulf War

• The Cold War

• The Korean War

• The Vietnam War

What was a significant consequence of the 1973 oil crisis for Japan?

• Increased technological progress

• A decrease in economic growth

• A rise in agricultural exports

• A boost in consumer spending

What was one of the main reasons for the formation of an asset bubble in Japan during the 1980s?

• Low interest rates and lax regulations

• Strict banking regulations

• High interest rates

• Decreased foreign investment

What was the impact of the Plaza Accord on Japanese exports?

• Made them cheaper

• Made them more expensive

• Increased their demand

• Had no effect

What was a major factor that led to the banking crisis in Japan in 1997?

• Technological advancements

• Increased foreign investment

• Zombie loans

• High interest rates

What term is used to describe loans that are unlikely to be repaid and contributed to Japan's banking crisis?

• Phantom loans

• Ghost loans

• Zombie loans

• Vampire loans

What economic condition did Japan experience during its lost decades?

• Hyperinflation

• Economic boom

• Deflation

• Rapid growth

What innovative monetary policy did Japan first implement to combat deflation?

• Interest rate hikes

• Currency devaluation

• Quantitative easing

• Increased taxation