Effectiveness of mp

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The IS curves slopes downwards because as income increases, saving also increases and rate of interest falls

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The LM curve slopes upwards because as income increases, rate of interest also rises because of a rise in the demand for money. LM curve is derived from the money market. Each point on the LM curve is a point of equilibrium in the money market.

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3. The IS curves slopes downwards because as income increases, saving also increases and rate of interest falls

4.

5. The LM curve slopes upwards because as income increases, rate of interest also rises because of a rise in the demand for money. LM curve is derived from the money market. Each point on the LM curve is a point of equilibrium in the money market.

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