What are some key things that we need to know about LM-IS curves? For the IS curve, if the interest rate goes up, investments will go down because the cost of financing is more expensive now, but what about saving? I thought it would go up because since the interest rate of deposit has gone up, people would want to save more?
I wrote a series of articles on these that may be of some help, starting here: http://financialexamhelp123.com/islm-deriving-aggregate-demand-synopsis/.