This is a policy option designed to slow down the movement of the business cycle. No action is required by the President or Congress. They stabilize in that their effect runs counter to the economic trend. These are the tools that fight a recession. These are the tools that fight an overheated economy.
Fiscal policy dominates, so real GDP grows and inflation occurs.
This policy will cause AS to shift right. I.e., lowering the costs of businesses. It uses up funds that would go to investment. Government borrowing is an added demand to borrow. In the credit market, an increase in demand raises the price of money.