The greater the marginal propensity to consume, the

Name: The greater the marginal propensity to consume, the
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The IS curve represents the relationship between interest rates and the level of income that ensures the goods market is in equilibrium. A higher marginal propensity to consume implies that a change in income leads to a larger change in consumption, which in turn means that a smaller change in interest rates is needed to affect a given change in income. This results in a flatter IS curve.

The Greater the Marginal Propensity to Consume, the