If the government restricts the flow of cash into the economy too severely,

Question

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If the government restricts the flow of cash into the economy too severely, consumers will not have enough money to borrow and spend, which can lead to a decrease in demand for goods and services, thus affecting businesses negatively. While businesses may have more money to invest due to a decrease in demand and increased competition for funds, it is not certain and may not be enough to offset the negative effects on the overall economy. Employment may also not rise dramatically in this scenario as businesses may not have the resources to hire more workers.

If the Government Restricts the Flow of Cash into the Economy