Explanation

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The investment demand curve quantifies the level of investment in a firm at every real interest rate.

In this space, an explanation of the desired shift will appear.

An increase in capital costs will lead to a decrease in investment demand because the burden of the investment is high

A decrease in capital costs will lead to an increase in investment demand because the burden of the investment is low

An increase in business taxes will lead to a decrease in investment demand because the tax will be an additional cost that will deter the business from investing

A decrease in business taxes will lead to an increase in investment demand because the decrease in cost that will attract the business to invest

An improvement in technology will increase investment demand because the investment will lead to an increase in output that will increase productivity. Firms have an incentive to invest because it is increasing their competitiveness

A regression in technology will decrease investment demand because the investment will lead to a decrease in output that will decrease productivity. Firms do not have an incentive to invest because it is not increasing their competitiveness

An increase in capital stock at hand will decrease investment demand. If a firm is already equipped with capital, they won’t feel a need to invest further

A decrease in capital stock at hand will increase investment demand. If a firm is not already equipped with capital, they will feel a need to invest

If the expectations for future profits increase, meaning the business will have a successful future, then the firm will have an incentive to invest

If the expectations for future profits decrease, meaning the business think they may have to shut down, then the firm will be less likely to invest