In $2015$, the Malaysian government announced objectives to raise productivity and savings. Consumer spending has increased, partly because higher wages have been earned mainly by older workers. Even so, low savings levels remain a concern. Savings supply funds for investment (spending on capital goods), helping economic growth and affecting inflation.
(a)[2]
Identify two methods a government might use to encourage saving.
(b)[4]
Explain two reasons why productivity may rise.
(c)[6]
Analyse how a rise in investment could affect inflation.
(d)[8]
Discuss whether or not older workers receive higher pay than young 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” …