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If the investment demand curve shifts to the left, then?

If the investment demand curve shifts to the left, then?
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Answer #1

Answer :-

Aggregate Demand consists of investment, consumption, government spending and net exports. If the investment falls due to high interest or fall in consumer confidence,there will be a fall in aggregate demand and it will shift to the left.

When investment decrease then the investment demand curve shift to leftward. When investment decrease then people get less income to spend.

As a result, the aggregate demand decrease which shift the aggregate demand curve to leftward.

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