Which of the following best describes how an increase in the money supply shifts the aggregate demand curve?

1. The money supply shifts right, prices fall, spending increases, and the aggregate demand curve shifts right.
2. The money supply shifts right, the interest rate rises, investment decreases, and the aggregate demand curve shifts left.
3. The money supply shifts right, the interest rate falls, investment increases, and the aggregate demand curve shifts right.
4. The money supply shifts right, prices rise, spending falls, and the aggregate demand curve shifts left.