A decrease in investment demand would most likely be caused by a

Question

Quizplus · Accepted Answer

Investment demand is largely driven by the expected demand for output in the future. If businesses believe that consumer demand will decrease, they will likely decrease their investments in new capital goods, which would result in a decrease in investment demand. A decrease in the market interest rate, a decrease in corporate income tax rates, and a decrease in the cost of new capital goods could all potentially increase investment demand.

A Decrease in Investment Demand Would Most Likely Be Caused