During the Great Depression of the 1930s, existing economic theory was ... tenets in the Keynesian description of how the economy works: • Aggregate demand is influenced by many economic ...

Keynesian economics is a theory ... sector. The government can borrow (through the sale of bonds) to finance spending initiatives, such as construction projects, to boost employment and inject ...

Money also flows into the circle in a four-sector model through exports (X) that bring in cash from international buyers from the foreign sector ... to spend less. Keynesian economics believes ...