investment demand

Investment Demand Curve

Investment Demand Curve   The investment demand curve is a graphical representation of the relationship between the real interest rate and the level of investment in an economy. It typically slopes downward, signifying that as the real interest rate increases, the level of investment in the economy decreases. Here’s a breakdown of the concept: Factors influencing the investment demand curve: Real interest rate: The cost of borrowing for businesses and individuals. Higher real interest rates make borrowing more expensive, discouraging investment in projects…