According to Keynesian theory, how are interest rates determined?

Answer 1

http://www.csuchico.edu/~rjames/class/econ102I/notes/Ch%2016.pdf

Answer 2

Oops, your question puzzled me. Now I see what you're asking. Keynes believed that authorities might want to stick their nostril contained in the monetary gadget in circumstances of recession to 'accurate the pump' (did not artwork to good for obamadinejhad even with the reality that, now did it?), yet he did believe it to be in problem-free words in down circumstances. What i believe Ron Paul meant is that the authorities doesn't end the spending on the point the monetary gadget is primed and go lower back to pre-disaster stages. particularly, the democraps keep spending at that new aspect till the subsequent disaster (many times led to by extra stupid lib loser regulations) comes alongside. Then they upload even extra spending on accurate of the purely right boost. And the democrap cycle is going on and on and ......... he's ideal on that count number. and that i'm no longer somewhat a large Ron Paul fan