Comparisons of Cycle of Money with and Without the Maximum and Minimum Mixed Savings

Abstract

This paper is about the utility of cycle of money with and without the maximum and/or the minimum mixed savings. This means that we examine the crucial points of tax policy and public policy which are the best for the increase of consumption and of the investments, subject to the case that there exist the maximum and/or the minimum mixed savings and the case that we have an absence of the maximum and/or the minimum mixed savings. Therefore we have an analysis which based on the utility of the public sector and the utility of the uncontrolled enterprises. Thence, it is plausible to extract conclusions about the utility of cycle of money, showing the points and the behaviors of any economy when there are and when there are not the maximum and/or the minimum mixed savings. For the purposes of this analysis is used a Q.E. method approach.

Keywords: maximum and miinimum mixed savings, tax policy, public policy, cycle of money

JEL Classification: H2, H26, E22, E23