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The IS curve is a negative slope, indicating that higher levels of output are associated with lower interest rates. The negative slope follows from the assumption that investment is inversely related to the interest rate. As the interest rate decreases, investment and hence, equilibrium output increases- Dr Remy Hounsou
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What is the typical slope of a demand curve?
Downward
Why does Investment Savings Curve slope downward?
due to negative slope
Which direction does the demand curve slope?
Is always negative. (should be in all caps for emphasis)
Why demand curve slopes downward?
Demand curve is slope downward because of inverse relationship between price and quantity.
How does the principle of diminishing marginal utility explain the slope of the demand curve?
The principle of diminishing marginal utility explains the slope of the demand curve by letting us be able to see which direction the slope is in, which is always downward.
What is the typical slope of a demand curve?
Downward
Why does Investment Savings Curve slope downward?
due to negative slope
Supply curve slope downward?
supplycurve is negative slope in decreasing cost industry
Slope of indifference curve?
indifference curves slopes downward to the right
Which direction does the demand curve slope?
Is always negative. (should be in all caps for emphasis)
Why demand curve slopes downward?
Demand curve is slope downward because of inverse relationship between price and quantity.
How does the principle of diminishing marginal utility explain the slope of the demand curve?
The principle of diminishing marginal utility explains the slope of the demand curve by letting us be able to see which direction the slope is in, which is always downward.
Why do the demand curve slope downward?
The demand curve will have a downward slope indicating ________ . A. the expansion of demand with a fall in price B. contraction of demand with a rise in price C. the expansion of demand with a fall in price and contraction of demand with a rise in price D. rise in price causes a rise in supply
Explain the subsititution and income effect of decrease in price?
substitution effect is the explanation for the downward slope of the aggregate damnd curve.
The derivative finds the of a curve?
The gradient of the tangents to the curve.
Which way does the Phillips curve slope?
The Phillips Curve is an inverse relationship between the rate of unemployment in an economy and the inflation. The lower the unemployment is, the higher inflation we get! Thus we can say that the Phillips Curve is negative (downward sloping)
Is the price elasticity constant along the demand curve?
Price elasticity of demand is equal to the instantaneous slope of the demand curve, or the slope of the tangent line at any point on the demand curve. So if the demand curve is represented by a straight downward sloping line, then yes, price elasticity of demand is equal to the slope of the demand curve. Otherwise, the slope at any point on the curve is changing, and you can find the it by taking the derivative of the demand curve function, which will find the Price elasticity of demand at any single point. Thus, the Price Elasticity of Demand changes at different points on the demand curve.
