A fall in investment demand can result from ?
Correct answer: D. All of the above
- A. higher interest rates
- B. lower expected future profits
- C. more expensive capital goods
- D. All of the above
Explanation
Investment demand falls when borrowing costs rise, expected profits decline, or capital goods become more expensive. Each factor makes new investment projects less attractive, so all listed conditions apply.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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