What happens when the government spends?

In an economy where the money market adheres to the principles of the classical model but the commodity market displays a substantial amount of Keynesian unemployment with stable prices, what happens when the government increases its expenditure and finances it by selling bonds to the non-banking private sector? the government increases its expenditure and finances it by selling bonds to the banking system?

Answer:
It's been a while since I took econ, but i would say that government spending helps to revitalize the economy. Financing it by selling bonds it's pretty secure since U.S. bonds are still perceived to be very dependable; a secure investment even by other countries who also buy them...
Nothing. They have money from the working people, in the form of taxes, coming in constantly. That is why the IRS is often referred to as the ETERNAL revenue Service.

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