answersLogoWhite

0

The IS curve will become flatter when there is an increase in the sensitivity of investment to changes in interest rates. This can occur due to factors such as greater access to credit, increased business confidence, or more responsive consumer spending. Additionally, if the economy has a higher level of financial innovation or lower interest rate volatility, these conditions can also contribute to a flatter IS curve, indicating that shifts in interest rates have a more pronounced effect on output.

User Avatar

AnswerBot

14h ago

What else can I help you with?

Continue Learning about Economics

Why is the ordinary demand curve flatter than a compensated demand curve if the good is a normal good but the reverse is the case if the good is inferior?

because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.


How can one determine elasticity on a graph?

To determine elasticity on a graph, you can look at the slope of the curve. If the curve is steep, it indicates inelasticity, while a flatter curve suggests elasticity. Additionally, the price elasticity of demand can be calculated by dividing the percentage change in quantity demanded by the percentage change in price.


What is the relationship between net exports and GDP?

The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise


Give details that why an Indifference Curve is not concave?

Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it


Do both monetary policy and fiscal policy shift the aggregate demand curve?

Yes. An expansionary fiscal policy, or more optimistic growth expectations in the private sector will shift the aggregate demand (AD) curve upwards. The position of the AD curve is also affected by the central bank's inflation target, if the target falls, the AD curve will shift downwards. Monetary policy influences the slope of the AD curve as well as the position. If the central bank put strong emphasis on fighting inflation and little emphasis on stabilizing output, the AD curve will be flatter. The other way around will yield the opposite result.

Related Questions

Why is the ordinary demand curve flatter than a compensated demand curve if the good is a normal good but the reverse is the case if the good is inferior?

because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.


How can one determine elasticity on a graph?

To determine elasticity on a graph, you can look at the slope of the curve. If the curve is steep, it indicates inelasticity, while a flatter curve suggests elasticity. Additionally, the price elasticity of demand can be calculated by dividing the percentage change in quantity demanded by the percentage change in price.


What is the relationship between net exports and GDP?

The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise


How to draw a butt?

you make one curve. then you make another curve. presto? you have a butt.


Why is it easier to break an egg at the flat side rather than at the pointed side?

because the curve, like an arch in a bridge, is sort of self supporting. the flatter it is the easier it is to break.


Give details that why an Indifference Curve is not concave?

Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it


Why would a girl flatter another girl?

so you can watch them make out


What is the relationship between temperature and the shape of the Gibbs free energy curve in a chemical reaction?

The relationship between temperature and the shape of the Gibbs free energy curve in a chemical reaction is that as temperature increases, the curve becomes flatter and broader. This is because higher temperatures increase the kinetic energy of molecules, making it easier for the reaction to occur, resulting in a lower activation energy and a more spread out curve.


Is the shape of an inddifference curve convex from above or below?

An indifference curve is typically convex from below. This means that as you move along the curve, the slope becomes flatter, reflecting the principle of diminishing marginal rate of substitution. In other words, as a consumer substitutes one good for another, they are willing to give up fewer units of the good they're consuming less of, resulting in the curve's convex shape.


How do you make your stomach flatter in one hour?

Not possible... do crunches the entire hour?


When you push the tuning slide in on your trombone does it make the note sharper or flatter?

Sharper!


What angle does the letter you make?

It does not. It has a smooth curve. That is called an arc.

Trending Questions
Sometimes sellers have little choice in setting a selling price because it is already marked on the item by the manufacturer. Which of the following commodities is mention in your reading material? Sales revenue minus cost of goods sold? What is the negative aims of American colonization in Philippines? Does interlectual property theft undermine the workings of the free market system? What are two ways in which industrial development has affected ecosystems? An organization of nations formed to promote the free movement if resources and products among its members and to create common economic policies is called what? Difference between ethics and social responsibility? Why did Baghdad become an important center of trade? How does nuclear energy help with robots? What are two types of government regulations for microeconomics? How did marx and engles historical embrace of the concept of class struggle shape their understanding of the great forces clashing during this industrial age? Are retirement benefits the same as life ins on an estate? How do you determine the opportunity cost of an investment and why is it important to consider in financial decision-making? What is the formula for calculating GDP, which includes the components of consumption (C), investment (I), government spending (G), and net exports (X-M)? Why did buying slow in the 1920s? What does Avarice means? What happen if the demand exceed the supply of a resource? Do you think the government should subsidize college education so that it can be provided with very low tuition? What are the measures taken to stop trade and other economic contacts with a nation that has broken international law? Critically examine the fisher's version of quantity theory of money?