When the maximizing actions of two economic agents are not aligned, these agents face a(n):

In the Keynesian model, which of the following will cause a reduction in interest rates?

A) An increase in money demand B) An increase in money supply C) An increase in saving D) A decline in saving

An open market purchase immediately impacts the banking system balance sheet by

a. increasing required reserves. b. increasing deposits. c. increasing the money multiplier. d. increasing excess reserves. e. none of the above.