Analyze the three different money models discussed in Chapter 11 to determine which model seems most appropriate for explaining the way money works to someone with a limited economic background. Explain your rationale.
From the e-Activity, discuss the significance and meaning of quantitative easing in the context of the liquidity preference model (increase in the quantity of money supplied). Provide specific examples to support your response.
Use the Internet to research the Fed's 2010-2011 quantitative easing program, popularly referred to as QE2.