Refer to Figure 15.4.An increase in the money supply from Ms₁ to Ms₃ will cause

Name: Refer to Figure 15.4.An increase in the money supply from Ms 1 to Ms 3 will cause
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According to the diagram, an increase in the money supply results in a decrease in the interest rate from 9% to 7%. This decrease in interest rate will lead to an increase in investment of $20 billion, as shown by the shift from U1B11 to U1B13 on the investment demand curve.