According to the national economic equation Y = C+I+G+X-M, where C and M are endogenous variables, the position of the IS curve is determined by private investment I, government investment G and export X * * * *; The slope of IS curve is determined by marginal propensity to consume, marginal propensity to import and marginal tax rate. The position of LM curve is determined by money supply.

Increasing investment expenditure will shift the IS curve to the right; At the same time, because the money supply remains unchanged, the LM curve remains unchanged.

(2) Whether it is necessary for the government to adopt a policy aimed at interest rates and the amount of money: there are different views in theoretical circles.

Keynes believed that the government could adjust the interest rate by adjusting the money supply, thus effectively stimulating investment and increasing national income, so he advocated that the government should actively intervene;

The rational expectation school believes that in the long run, people will expect the macro-control policies adopted by the government and take corresponding countermeasures, thus making all government interventions ineffective. In the long run, the national income level will stabilize at the level of natural unemployment.

In practice, the effectiveness of monetary policy is influenced by a country's exchange rate policy, the independence of the central bank and other factors. Monetary policy under the fixed exchange rate system is invalid. At this time, even if the government adopts policies aimed at interest rates and the amount of money, it will be offset by the flow of international capital. In China, due to the diversification of the central bank's functions and monetary policy objectives, the government's regulatory objectives are more aimed at reducing the unemployment rate, which makes the efforts to reduce interest rates ineffective; Due to the implementation of exchange rate control in China, the money supply is largely affected by foreign exchange holdings and cannot be independently regulated.

I think it is necessary for the government to adopt policies aimed at interest rates and the amount of money. The central bank should maintain certain policy independence and credit independence.