2. The gentler the 2.IS curve, the less obvious the effects of fiscal policy, the higher the income and the bigger the crowding-out effect.
3. When the vertical IS curve intersects the horizontal lm curve (the Keynesian area of LM), the fiscal policy is completely effective.
4. The inclined IS curve intersects with the horizontal lm curve (the Keynesian area of LM), and the fiscal policy is still very effective. There is no extrusion effect.
5. When the horizontal IS curve intersects with the vertical lm curve (the classic area of LM), the fiscal policy is completely invalid and the monetary policy is completely effective.