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It is imperative to note that, theoretically, the fiscal stimulus does not create inflation when it consumes resources, which would have been otherwise inoperative (Razin, Assaf, and Jacob, 2006). This follows that, the private sector is affected by the increased demand for the credit in the financial markets because the financial institutions tend to limit access of loans to the private sector and this reduces the level of production, hence hampering the ambitious investments projects from the private investors.