Utility of Cycle of Money with and without the Escaping Savings

Abstract

This paper is about the utility of the cycle of money with and without escaping savings. This means that it is examined the critical points of tax policy and public policy which are the best for the increase of consumption and of investments, subject to the case that there exist escaping savings and the case that we have an absence of escaping savings. Therefore, there is an analysis on the utility of the public sector and the utility of the uncontrolled enterprises. It is plausible to extract conclusions about the utility of the cycle of money, showing the points and the behaviors of any economy when there are and when there are no escaping savings. For this analysis is used a simple system of first-order derivatives under conditions, and the Karush-Kuhn-Tucker method.