Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

Exercise 1

Assume the money multiplier is 10. For each of the following, state the impact on the money supply curve (the direction it will shift, and the amount of the shift), and whether the nominal interest rate will rise or fall as a consequence.
a. The Fed purchases bonds worth $10 billion.
b. The Fed sells bonds worth $5 billion.