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Effects of Public Borrowing on Economy by PhanHiềnLương is a document available to read on EtoBox.

Public borrowing involves transferring purchasing power from individuals to the government and then back again. This has both revenue and expenditure effects on the economy. The exact effects depend on how the borrowed funds are used. If funds are used productively, it can increase national income by rationally allocating scarce resources. However, using funds for unproductive activities like debt repayment may not allocate resources optimally and can reduce income by discouraging work through higher taxe

Author

PhanHiềnLương

Language

EN