MAKE THIS BETTER In the long run, the persistent of fiscal policy can have a negative affect the economy in three ways; raise in debt to GDP ratio, slow economic growth, and increase in interest rate. The raise in debt to GDP ratio happens when government expenditures exceed the means of revenue unable to sustain its debts causing national debt. In order to pay spending, government will seek to borrow financial finds. This as mentioned before makes it harder for private companies to invest in their companies. In return not allowing for economic growth