Which of the following will NOT increase the investment demand curve?
A)the introduction of new technology offering profitable investment opportunities
B)business expectations of higher future sales and profits
C)a decrease in the real interest rate
D)business inventories that have fallen far below desired levels

Question

Quizplus · Accepted Answer

A decrease in the real interest rate will lower the cost of borrowing and make investment more attractive, thus increasing the investment demand curve. The introduction of new technology, higher business expectations, and insufficient inventory levels are all factors that could lead businesses to increase investment, thus shifting the investment demand curve to the right.

Which of the Following Will NOT Increase the Investment Demand