How do government actions affect consumption and investment?

The government actions affect consumption and investments are;

• The Government has the authority to make massive improvements to monetary and fiscal policies, through increasing or reducing interest rates results in the shift in business activities.
• Government can raise the money that momentarily raises business earnings and bond prices.
• Governments may interfere by offering debt relief when businesses or whole sectors of the economy swing.
• Governments may establish discounts, tax the consumer, quotas, or applicable taxes on imported goods to render domestic goods more desirable.
• Tax increases and fines, and stronger restrictions may curtail businesses or entire sectors.