If the money multiplier is 10,the sale of $1 billion of securities by the Fed on the open market causes a

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The sale of $1 billion of securities by the Fed on the open market would lead to a $10 billion decrease in the money supply because the money multiplier effect implies that an initial change in the monetary base (in this case, a decrease due to the sale) is magnified in the economy by a factor of the money multiplier (in this case, 10).

If the Money Multiplier Is 10,the Sale of $1 Billion