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The interest rate is the thing that primarily affects the investment demand curve and an increase in investment indicates a decrease in real interest rate. This makes sense because it is better for borrowers to pay a lower interest rate.
Also, better technology can cause the investment demand curve to shift out, also high inventories. If interest rates are expected to be higher in the future, firms will choose to invest now and the lowering of Business Taxes will result in the investment demand curve to shift outwards.
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Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
What happens to demand and demand curve when there is an increase in the factor?
If there is an increase in demand then a new demand curve appears to the right of the original, but if there is an increase in quantity demanded, then there will only be an increase in price and a new demand curve will not appear.
How would a keynesian view the money demand curve and the investment demand curve?
by looking at it
What make a shift in the aggregate demand curve?
An increase or decrease in consumption, investment, government expenditure or net exports
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
What happens to demand and demand curve when there is an increase in the factor?
If there is an increase in demand then a new demand curve appears to the right of the original, but if there is an increase in quantity demanded, then there will only be an increase in price and a new demand curve will not appear.
How would a keynesian view the money demand curve and the investment demand curve?
by looking at it
What make a shift in the aggregate demand curve?
An increase or decrease in consumption, investment, government expenditure or net exports
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
How do you show on a demand curve an increase in the demand for a good?
You can choose to shift the demand curve to the right i.e. expansion of demand.
How is an increase in demand represented?
by a shift to the right of the demand curve
What is is a shift of the demand curve to the right (an increase in demand) or to the left (a decrease in demand).?
Change in demand.
What is the difference between change in demand curve and shift in demand curve?
Change in demand curve is caused by the change in the price of the product. This is the change that occurs ON THE DEMAND CURVE. The price changes changes the QUANTITY DEMANDED, not the demand curve itself. Shift in demand curve is caused by NON PRICE DEMAND DETERMINANTS. Basically it shifts the ENTIRE curve (right (increase) or left (decrease)). Change in income, change in number of consumers, taste and preferences, price of related goods, and future expectations all cause shifts in demand curve. For example, an increase in the number of consumers would shift the demand to the right because demand would increase.
An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied?
False. An increase in demand means a shift of the demand curve to the right, it will increase both price and quantity supplied.There is no shift of the supply curve.
In economic what is a change in demand?
It is a shift of the demand curve to the right (an increase in demand) or to the left (a decrease in demand).
What effect does income have on demand?
An increase in income tends to shift the demand curve for a good or service:For a normal good, the curve will shift to the right, indicating an increase in the demand at the same price.For an inferior good, the curve will tend to shift to the left, indicating a decrease in demand at the same price.
