Problem
In the New Monetarist model, suppose that the central bank conducted a "quantitative easing" program by issuing outside money and exchanging it for privately produced liquid financial assets. What would the macroeconomic effects be? Does it matter if there is a liquidity trap where excess reserves are held in the financial system? If so, why, and if not, why not? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.