The money market in the united states, the investment demand, aggregate demand, and aggregate supply curves are as shown in the graphs below. currently, the federal reserve has a money supply of $100 billion and the money market is in equilibrium. a. suppose the federal reserve increases the money supply by $40 billion. use the money market, investment demand, and ad/as graphs to show the effects of the increase in the money supply on interest rates and money demand, investment, and in the ad/as model. instructions: in the money market graph, use the tool provided 'ms,1' to draw a new money supply curve. plot only the endpoints of the line (2 points total). use the tool provided 'new equilibrium' to plot a new equilibrium interest rate. instructions: in the investment demand graph, use the tool provided 'investment' to plot a new level of investment demand. instructions: in the ad/as model, use the tool provided 'new curve' to plot the appropriate line. plot only the endpoints of the line (2 points total). label your curve appropriately. b. when the federal reserve wants to increase the money supply, it uses policy, which interest rates and causes prices to while in the short run real gdp . next visit question mapquestion 6 of 13 total 6 of 13 prev