The IS curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand.

Name: The IS curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand.
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The IS curve becomes steeper when there is a decrease in the interest-sensitivity of investment demand because it implies that changes in interest rates have a smaller effect on investment, thus reducing the responsiveness of output to interest rate changes.

The IS Curve Becomes Steeper If There Is __________ in the Interest-Sensitivity