 factors that shift the IS curve in the open economy. Any factor that raises the real interest rate that clears the goods market at a constant level of output shifts the IS curve up and to the right. Example is a temporary increase in the government purchases. We'll shift IS curve up and to the right. Let's see. This is the initial net export curve and this is the curve of saving and investment difference. We have understood in the last module that it is positively sloped and the negative slope of the NX curve. So the intersection point is the equilibrium of the goods market. R1 interest rate per Y output. So if there is an increase in the government spending, what will happen in the market? The increase in the government spending will reduce the national desired savings. So this curve, S minus I curve, it will shift to the left. It will become red. So this curve is on the intersection point E. This means that when there is a loss in the national desired savings, saving, your loanable funds, your funds supply in the market, if there is a loss, then the interest rate will increase to R2. So now the income is the same. We have kept the income constant in the government. The increase in the spending, then the interest rate increased to R2. So this IS curve will shift upward. If we compare the higher interest rate, then it will be shown by this point F. So the rise in government purchases reduces desired national savings, shifting the S minus I curve to the left, shifting the IS curve up and to the right. Anything that reduces desired national savings relative to the investment, shifts the IS curve up and to the right. Factors that shift the open economy, IS curve, anything that raises a country's net exports. Okay. The net exports will increase in the country. Given domestic output, which means that the GDP of your country is constant and the net exports will increase. And the domestic real interest rate is constant. This will shift the open economy, IS curve, up and to the right. Let's understand this with a diagram. So this was your first intersection point. Okay. And the net exports will increase and your exports curve will shift upward. So the interest rate will increase and the IS curve will shift upward. So the increase in the net exports will shift the curve upward. This is the real interest rate for a fixed level of output, shifting the IS curve up and to the right. And increase in foreign output. There are three things that will affect your net exports. Okay. The country where your net exports can increase. The first thing is that an increase in the foreign output. If your trading partner is in income, then they will import more which is our exports and the net exports will increase. The second reason is an increase in the foreign real interest rate. If our trading partner is in the real interest rate, then what will happen in the country? Then people in our country will want to buy their assets. Okay. In that case, in the foreign exchange market, the supply of our currency will increase, it will depreciate, and as a result of this depreciation, the net exports will increase. And the third reason is that a shift in world-wide demand towards domestic countries, goods. If our exports are selling in the world, and the demand increases, then the net exports will also increase. So, why can there be an increase in that? There can be different reasons. For example, if our quality is better, then there can be an increase in the demand of our exports. So, this is a summary of the international factors that will shift the IS curve. Okay. Our trading partners in foreign countries, if their output increases, then this will shift the IS curve upward. In other countries, our trading partner, if foreign countries increase in the real interest rate, then this will shift upward. And likewise, worldwide, if our demand increases, then this will shift our IS curve upward. Thank you.