Which of the following causes a movement along the investment demand?

Question

Quizplus · Accepted Answer

A change in the interest rate causes a movement along the investment demand curve. As the interest rate decreases, it becomes cheaper for firms to borrow money to invest in new projects, leading to an increase in quantity demanded of investments. Conversely, as the interest rate increases, it becomes more expensive for firms to borrow, leading to a decrease in the quantity demanded of investments. The other choices (A, C, and D) can shift the investment demand curve, but they do not cause a movement along the curve.

Which of the Following Causes a Movement Along the Investment