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Why does the IS curve slope downward?
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
What is the typical slope of a demand curve?
Downward
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
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.
What is the typical slope of a demand curve?
Downward
Why does the IS curve slope downward?
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
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
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)
What determines the slope of an IS curve and how?
Investment schedule and size of the multiplier
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
The derivative finds the of a curve?
The gradient of the tangents to the curve.
Explain the subsititution and income effect of decrease in price?
substitution effect is the explanation for the downward slope of the aggregate damnd curve.
