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Please read
– the Ch.27 and Ch.28 material, and
– the excerpt from the Regional Economist research source Quantitative Easing: How Well Does This Tool Work? pertaining to the Monetary Policy concept attached below:



Then, compose a short essay by answering the following questions in a meaningful manner:

Q1: (a) What is money? and (b) How does the Federal Reserve System (the Fed) create money in the


Q2: (a) What is quantitative easing (QE)? and (b) Is QE in your opinion an effective monetary

policy tool (used by the Federal Reserve System) to help ensure that inflation does not fall below the

central banks inflation target? In other words, can the injection of money into the economy in order

to expand the economic activity help bring the economy out of recession?



Include examples from the readings to support your paper of 600 words minimum and to receive full

credit for the assignment.

Please follow the guidelines below for submitting your paper:

1. Write the short essay in MLA format.