Activity 1: Making it Count!
The Philippines has encountered many serious problems most of the time. In the table below, list down some of these economic problems the country has encountered for this year. At the opposite side, give at least three possible solutions that you think will help solve the problem you have listed at the right.
Share
answer:
economic problem: government expenditures and deficit
social security
family income
the savings rate
consumption binge
no retirement funds
health care
Solutions: cutting interest rate - makes borrowing cheaper and should increase the disposable income of firms and households-leading high spending.
quantitative easing- when central bank creates money and buy bonds to reduce bond yield.