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Homework answers / question archive / Does the fact, that economists cannot fully describe where the money for macroeconomic profits and interest comes from, support anti-realism?
Does the fact, that economists cannot fully describe where the money for macroeconomic profits and interest comes from, support anti-realism?
This question is concerned with the fundamental issue of the flow of money in the economy that is related to working of the whole economy as employment, inflation, and capital spending is affected by the aggregate profits.
As far as the concern is related to the determination of sources of profits and interest rates at the macroeconomic level, its determination is tough because of the business cycle dynamics of the business units. Many sources generate money on a macro level, such as international dealing and collection of taxes by the central authority. Economists try to estimate the approximate sources that generate money but fail to describe it thoroughly.
The process of elaborating and identifying the sources by economists as a whole is complicated, but it is a crucial work to balance the working of the whole economy. The determination of the flow of money is fundamental work in economics and, thus, supports the fact of anti-realism. Antirealism works in opposition to realism and rejects to approve that the non- observable phenomenon or any facts exist.