The shift of IS curve: the investment increases or the savings decreases, and the IS curve moves to the upper right; With the decrease of investment or increase of savings, the IS curve moves to the lower left corner.
1, the movement of the investment function. If the independent investment E increases for some reason, the investment curve moves to the upper right, and IS moves to the upper right; otherwise, E decreases and IS moves to the lower left.
2. With the movement of saving function, people's desire for saving increases. At every income level, people will increase their savings. The savings curve moves to the upper left, the savings curve moves to the lower left, and vice versa.
Extended data:
The slope of IS curve and the factors affecting the slope of IS curve
1, slope of IS curve: dr/dy =-(1-b+Bt)/h =-(1-(1-t) b)/h.
2. Factors affecting the slope of IS curve: B and H.
The greater the value of B, the smaller the absolute value of the slope of the IS curve (that IS, the flatter the IS curve), the greater the multiplier of national income, and the more sensitive Y is to R; The smaller the value of B, the greater the absolute value of the slope of the IS curve (that IS, the steeper the IS curve), and the smaller the multiplier of national income, the less sensitive Y is to R. ..
The greater the H value, the smaller the absolute value of the slope of the IS curve (that IS, the flatter the IS curve), the more sensitive I is to the change of R, and the more sensitive Y is to R; The smaller the H value, the greater the absolute value of the slope of the IS curve (that IS, the steeper the IS curve), the less sensitive I is to the change of R, and the less sensitive Y is to R. ..