Assume in a small closed country that all citizens earn $10,000 a year, the government spends $1,000 per citizen, and each citizen spends $9,000 on consumption. There is initially no savings, no net investment, and the real interest rate is zero. The government had been collecting $1,000 per citizen to pay for its spending. Then it decides for only one year to issue $1,000 per citizen in bonds, which are paid back next year. So, in per capita terms, the new tax looks like:

Year 0 No taxes but $1,000 in bonds
Year 1 $2,000 in taxes (includes $1,000 to pay back bond)
Year 2+ $1,000 in taxes

In the Keynesian model, what would happen? If people foresaw what was going to happen and wanted to maintain $9,000 in annual consumption, what would happen?