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Keynesian Boost
Neil Lancastle
This is Figure 6 from Lancastle, N. (2012) 'Circuit Theory Extended: The Role of Speculation in Crises' based on Keen, S. (2010). Solving the Paradox of Monetary Profits.
http://www.economics-ejournal.org/economics/journalarticles/2012-34
Banks expand their lending, which in this model leads to higher production, wages and spending. The result is an increase in total spending.