The aggregate demand curve is steep when interest rates don't respond much to changes in real money supply and changes in interest rates have a small effect on aggregate demand.

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The aggregate demand curve is steeper when changes in the real money supply have little effect on interest rates, and when changes in interest rates have a minimal impact on aggregate demand, because these conditions imply that monetary policy adjustments do not significantly affect aggregate demand, leading to a less responsive or steeper aggregate demand curve.

The Aggregate Demand Curve Is Steep When Interest Rates Don't