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How will the slope of the is curve be affected

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Reference no: EM132940919

Question 1: If consumption spending becomes more sensitive to changes in the real interest rate, how will the slope of the IS curve be affected?

Group of answer choices

Option 1: IS curve will become steeper.

Option 1: IS curve will become flatter.

Option 1: Slope of the IS curve will be unaffected.

Option 1: Slope of the IS curve may increase, decrease or remain the same depending on the amount of investment.

Reference no: EM132940919

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