There is a little model called the IS-LM model that can give an insight about what is going on . The model appears all over the internet, in certain places summarily explained and in others explained in great detail.
If you are not familiar with it I suggest you should start here:
https://www.dummies.com/education/economics/seeing-how-the-islm-model-represents-the-economy-in-the-short-run/
And once you are confident that you understood it to have a look at it here:
https://personal.utdallas.edu/~d.sul/Macro/chap11.pdf
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