Question: Explain which of these changes represent a move along the IS curve, and which represent a shift of the IS curve.
(A) Stock market boom boosts consumption and investment.
(B) Government cuts taxes by $50 billion.
(C) Government passes $50 billion public works bill and pays for it with a $50 billion tax increase.
(D) Fed boosts interest rate from 5% to 6%.
(E) Tax receipts fall $30 billion as economy plunges into recession.
(F) Value of the dollar rises 10%, cutting net exports by $40 billion.
(G) Net exports rise $20 billion as Asian economy recovers.
(H) Rise in interest rates diminishes housing starts. (I) Mortgage interest is no longer deductible, so housing starts decline.