IS-Curve


 

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IS-Curve

In the IS-LM model, the curve representing the combinations of national income and interest rate at which aggregate demand equals supply for all goods. It is normally downward sloping because a rise in income increases output by more than aggregate demand (through consumption), while a rise in the interest rate reduces aggregate demand through investment.



Similar Matches

Yield curve

Yield curve

A curve which plots current yields of fixed interest securities against their times to redemption (maturity). This enables investors to compare the yields of short, medium and long term securities at a given time.


Demand curve

Demand curve

The graph of quantity demanded as a function of price, normally downward sloping, straight or curved, and drawn with quantity on the horizontal axis and price on the vertical axis. Demand curves for imports and for foreign exchange usually have the same qualitative properties as demand curves for goods, but for somewhat different reasons.


Environmental Kuznets Curve

Environmental Kuznets Curve

An inverse U-shaped relationship hypothesized between per capita income and environmental degradation. Named after the Kuznets Curve dealing with inequality. Idea due to Grossman and Krueger (1993).


Inelastic offer curve

Inelastic offer curve

An offer curve with inelastic demand for imports. That inelasticity implies that exports decline as imports increase, and it therefore means that the offer curve is backward bending. Strictly speaking, the natural definition of an offer curve's elasticity would be negative in this case, not just less than one, but that definition is seldom used.


Positive yield curve

Positive yield curve

When long-term debt long-term debt are higher than short-term debt rates (because of the increased long-term debt involved with long-term debt long-term debt).


Further Suggestions

Riding the yield curve
Option Pricing Curve
Negative yield curve
Inverted yield curve
Indifference curve
Elastic offer curve
Reciprocal demand curve
Phillips Curve
Scitovszky indifference curve
LM-Curve
Trade indifference curve
Contract curve
Production possibility curve
Parallel shift in the yield curve
Offer curve
Community indifference curve
Spot rate curve
Steepening of the yield curve
Flattening of the yield curve
Stopping curve refunding rate
Theoretical spot rate curve
J-curve
Reaction curve
Death Valley Curve
BP-Curve


 
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