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The LM curve has a positive slope because as interest rates increase, the quantity of money demanded decreases. This is because higher interest rates make borrowing more expensive, leading to a decrease in investment and consumption, which in turn reduces the demand for money.
What else can I help you with?
Why doesn't an increase in taxes change slope LM curve when a change in taxes changes which changes consumption which changes national income which changes Y and LM slope equals (k/h)Y?
... doesn't change slope :/ solved lol
Why does the LM curve slope upwards?
In equilibrium: Money supply = Money demand.Summarizing it, we can explain the upward sloping LM curve as following:If income is high then thedemand for money will be high relative to the fixed supply. In order to equilibrate money demand and money supply, interest rates have to also be high to reduce money demand
Why does SRAS curve in positive slope?
positive slope is the main slope of sras curve. sras curve is positively sloped because when price level increases then GDP also increases in the short run which means if wage increases then definitely demand will be increased hense we can say that national income (GDP) will rise definitely so here production of a purticular country wll be on the positive line during a short period. ( think i have given my answer ) thank you.
What determines the slope of IS Curve?
mainly the slope of Is curve depends on ; -the slope of investment schedule -the size of the multiplier
What is the slope of a curve?
Slope of a Curve A number which is used to indicate the steepness of a curve at a particular point.The slope of a curve at a point is defined to be the slope of the tangent line. Thus the slope of a curve at a point is found using the derivative
Why doesn't an increase in taxes change slope LM curve when a change in taxes changes which changes consumption which changes national income which changes Y and LM slope equals (k/h)Y?
... doesn't change slope :/ solved lol
The derivative finds the of a curve?
The gradient of the tangents to the curve.
What is the nature of the slope of the voltage-resistance characteristics for the carbon lamp?
for Tungsten lamp the slope of the curve is positive where for carbon it is negative
What does the slope of the tangent to the curve on a velocity-time graph measure?
The slope of the tangent to the curve on a velocity-time graph represents the acceleration of an object. Positive slope indicates acceleration in the positive direction, negative slope indicates acceleration in the negative direction, and zero slope indicates constant velocity.
Why does the LM curve slope upwards?
In equilibrium: Money supply = Money demand.Summarizing it, we can explain the upward sloping LM curve as following:If income is high then thedemand for money will be high relative to the fixed supply. In order to equilibrate money demand and money supply, interest rates have to also be high to reduce money demand
Does a demand curve always have a positive slope?
Demand curves almost always have negative slopes. The Y value being price and the X value being quantity. The higher the price, the more negative the slope. There are very rare conditions where a demand curve could have a positive slope, but its not normally used in business classes.
What determines the slope of IS Curve?
mainly the slope of Is curve depends on ; -the slope of investment schedule -the size of the multiplier
Why does SRAS curve in positive slope?
positive slope is the main slope of sras curve. sras curve is positively sloped because when price level increases then GDP also increases in the short run which means if wage increases then definitely demand will be increased hense we can say that national income (GDP) will rise definitely so here production of a purticular country wll be on the positive line during a short period. ( think i have given my answer ) thank you.
How do you find the slope of a graph if it is a curve?
You find the slope of the tangent to the curve at the point of interest.
What is the slope of a curve?
Slope of a Curve A number which is used to indicate the steepness of a curve at a particular point.The slope of a curve at a point is defined to be the slope of the tangent line. Thus the slope of a curve at a point is found using the derivative
How do you calculate slope of a curve?
If the curve is on the xy-plane, finding an expression for dy/dx will give you the slope of a curve at a point.
What does the slope of a curve tells us?
The slope of a curve represents the rate of change of the dependent variable with respect to the independent variable at a specific point. A positive slope indicates that as the independent variable increases, the dependent variable also increases, while a negative slope suggests the opposite. The steepness of the slope reflects the magnitude of this change; a steeper slope signifies a greater rate of change. Additionally, the slope can vary along the curve, indicating how the relationship between the variables changes at different points.
