AP macroeconomics part 9 video response

In this video we learned how to relate the money market, loanable funds, and AD/AS graphs.When making the graphs we need to label everything. If the demand for money increases in the money market graph, then the demand for loanable funds will increase which means it will increase AD because of the increase in government spending. MV = PQ means change in supply of money is a change in price, so if one goes up then the other must go up also. Fisher effect is that a 1% increase in interest rate will yield a 1% increase in inflation.