In the AS/AD model, an increase in the money supply causes an increase in the interest rate and an increase in investment spending.

Name: In the AS/AD model, an increase in the money supply causes an increase in the interest rate and an increase in investment spending.
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In the AS/AD model, an increase in the money supply typically lowers interest rates, which in turn encourages an increase in investment spending.

In the AS/AD Model, an Increase in the Money Supply