answersLogoWhite

0

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

User Avatar

Wiki User

11y ago

What else can I help you with?

Related Questions

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


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.


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)


How does gravity affect materials on a slope?

Gravity exerts a downward force on materials on a slope, causing them to slide or roll downhill. The steeper the slope, the greater the force of gravity pulling the materials downward. This can lead to erosion, landslides, or other slope instability.