Question: Hello I need help with this question Suppose the Central bank is conducting an expansionary monetary policy, in the new monetarist model by issuing outside

Hello

I need help with this question

Suppose the Central bank is conducting an expansionary monetary policy, in the new monetarist model by issuing outside money and exchanging it for government bonds on the open market. What are its effects on FLAY Illustrate the equilibrium effects of this on aggregates variables. 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

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