Economy, asked by nihashahid, 9 months ago

explain why the slope of the IS curve is a factor in determining the monetary policy​

Answers

Answered by sivasanjana
3

Answer:

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Explanation:

The IS curve slopes downwards because as income increases, saving also increases and rate of interest falls. ... Each point on the LM curve is a point of equilibrium in the money market. The intersection of die IS and LM curves determine the equilibrium levels of income and rate of interest.

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