How capital allocation helps economy?

[Good-Person]

Capital allocation is a very interesting concept. It is a kind of concept which involves utilising resources like capital in the right manner. Capital allocation makes it possible for the money to move in the economy, so how can it help economy?

 

[Nomad]

Economy will get a boost only when money is released in the market. When there is money in the market, people will buy products and services, which will create a flow of money. Capital allocations will help the country to distribute money so that there are financial activities in the country.