Starting from equilibrium and using the ISLM framework, an increase in investment leads to

Name: Starting from equilibrium and using the ISLM framework, an increase in investment leads to
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An increase in investment shifts the IS curve to the right, increasing both income and interest rates. This is because the increase in investment leads to an increase in aggregate demand (Y = C + I + G + NX) which raises output and increases demand for money, leading to higher interest rates.

Starting from Equilibrium and Using the ISLM Framework, an Increase