The legislature passes a 10 percent investment tax credit. Under this program, for every $100 that a firm spends on new capital equipment, it receives an extra $10 in tax refunds from the government.
The tax credit lowers the price of new capital goods, this is an increase of savings. This causes the demand for savings curve to shift the right.
A reduction in military spending moves the government’s budget from deficit into surplus.
Savings to the tax payer raises and supply of savings curve shifts to the right.
A new generation of computer-controlled machines becomes available. These machines produce manufactured goods much more quickly and with fewer defects.
Due to increases production the demand curve shifts to the right.
The government raises its tax on corporate profits. Other tax changes also are made, such that the government’s deficit remains unchanged.
The raised taxes take more profit away from the company causing the demand for savings curve shifts to the left.
Concerns about job security raise precautionary saving.
Buyer will reduce the amount of spending making the supply of saving curve to shift towards the right.
New environmental regulations increase firms’ costs of operating capital.
Due to the increased cost, firms will not invest as much making the savings demand curve shift to the left.