Macro Economics

If the money supply is: The interest rate is: • $100 billion10% 120 billion 8% 140 billion 6% 160 billion 4% 120 billion 2% If the interest rate is: Investment spending is: 10%$10 billion 8%20 billion 6%30 billion 4%40 billion 2%50 billion Assume that equilibrium GDP is $400 billion, potential GDP is $500 billion, the marginal propensity to consume is 9/10, the interest rate is 8%, investment spending is $20 billion, the money supply is $120 billion, and the reserve requirement is 1/10. By how much and in what direction should the Fed change the monetary base? Explain it with formula.