Consider the economy's downward-sloping demand for investment curve.An increase in the interest rate causes

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An increase in the interest rate will lead to a movement upward along the demand for investment curve as higher interest rates decrease the expected return on investment, making investment more costly and reducing demand. Alternatively, a decrease in the interest rate would cause a movement downward along the curve, as lower interest rates make investment more attractive and increase demand. There is no shift of the curve involved in this scenario.

Consider the Economy's Downward-Sloping Demand for Investment Curve