老师能不能讲解一下这道题

问题如下：

Exhibit 1 provides some key points for the countries Morgan will be writing about in this week's economic update. Morgan discusses with Chan what these factors indicate about each country’s economic cycle and how they affect policy interest rates and fixed-income markets.

Based on the information in Exhibit 1, which country should most likely have a policy rate above the neutral rate?

选项：

A.

Japan

B.

United Kingdom

C.

Switzerland

解释：

A is correct. Japan is experiencing a positive output gap and an aggregate increase in borrowing. These factors are consistent with an economy that is producing beyond its sustainable capacity. As such, the appropriate policy rate should be above the neutral rate.

B is incorrect because inflation expectations have become more volatile, and equity risk premiums are increasing rapidly. These factors are not associated with an economy that is producing beyond its sustainable capacity.

C is incorrect because individuals have increased their marginal utility from consumption, and consumers have reduced borrowing levels. These factors are more likely associated with an economy that is producing below its sustainable capacity.