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6. Puerto Rico is in a deep economic depression. In times like these the economic policy...

6. Puerto Rico is in a deep economic depression. In times like these the economic policy of the government must be:

a. reduce public sector employment

b. increase taxes on consumers to increase government revenue

c. stimulate the economy based on increased public sector spending such as undertaking infrastructure projects and social programs that create jobs

d. privatize the electric power authority and the water and sewage authority by selling them to local foreign companies.

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Answer #1

To pay off its creditors, Puerto Rico must either increase taxes or cut spending on public services like power, health care, infrastructure, education, pensions, etc.

So option (b) is correct.

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