If the interest rate goes up,what happens to the investment demand curve?
A) It shifts to the right.
B) It shift to the left.
C) It stays put.
D) We cannot tell.

Question

Quizplus · Accepted Answer

The investment demand curve itself does not shift due to a change in interest rates; instead, there is a movement along the curve. An increase in interest rates typically leads to a decrease in the quantity of investment demanded, moving up along the curve.

If the Interest Rate Goes Up,what Happens to the Investment