In 2015, the Malaysian government stated its aims of boosting productivity and savings. Consumer spending has risen, partly because wages have increased, mainly for older workers. Even so, savings remain low, which is still a worry. Savings supply funds for investment (spending on capital goods), helping economic growth and also affecting inflation.
(a)[2]
Identify two methods a government could use to encourage saving.
(b)[4]
Explain two reasons why productivity may rise.
(c)[6]
Analyse how an increase in investment could affect inflation.
(d)[8]
Discuss whether older workers are paid more than younger workers.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Increase interest rates” …