Issue Details

AN IN-DEPTH THEORETICAL STUDY OF THE MICROECONOMIC IMPACT OF GENERAL FUNDING

ABSTRACT

We raise basic problems concerning the proper public investment’s role in fostering economic expansion, simultaneously on the domestic and commercial scales. Under the assumption that public and private investments are completely complimentary to one another, we investigate the effect that government expenditure has on the spending habits of consumers and the earnings of businesses. Taxation, bank borrowing, and seigniorage are some of the examples of several ways that public investment might be supported, and here we pose an important issue about the ramifications of these diverse techniques. Reason for doing this study is to investigate the impact of public capital on behaviors in the private and public sectors that maximize both utility and profit.

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