Prior to its stock market crash Japan enjoyed strong economi

Prior to its stock market crash, Japan enjoyed strong economic growth. However, the country also faced economic risk because O Its banking system was overburdened with bad loans O lower loan rates encouraged greater competition O International trade greatly increased domestic infiation lower consumer demand prompted further lending O over-employment led to declining wages

Solution

Correct Answer:

A

The Banking systems of Japan has issued huge volume of loans to people at lowest interest rates to fuel the consumption and economic growth. It has caused some loans to turn bad and create the risk. So, economic growth was achieved, but at a cost.