What are the factors on which the position and slope of IS and LM curv – InterviewSolution

1.

What are the factors on which the position and slope of IS and LM curve depend

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Answer:

The slope of the LM CURVE depends upon the INCOME ELASTICITY and the interest elasticity of the demand for money. Income-elasticity measures the RESPONSIVENESS of the demand for money to changes in income while interest elasticity measures the responsiveness of the demand for money to changes in the rate of interest.

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