why the study of public finance is crucial to the understanding of an economy
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Public finance is the study on how the government involves in an economic activities aiming at investments and improving the both domestic and external markets. Helps to understand the following issues as highlighted below;
The allocation of resources is based on the suitability of currency in circulation.The abundance of capital to invest in different markets will enable the country to allocate its resources to the domestic market without financial discrimination.
Again, the profits earned from taxation ,will enable the country to budget of some projects like infrastructure and social amenities. They will be improved hence making a country economy to flourish.
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