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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Effectiveness of mp

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

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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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