Investment Demand

Capital Goods: Capital goods are physical assets used by businesses to produce other goods and services. They include machinery, equipment, vehicles, buildings, etc.

Interest Rate: The interest rate plays a crucial role in determining investment demand. When interest rates are low, it becomes cheaper for businesses and individuals to borrow money for investments.

Business Confidence: Business confidence refers to the level of optimism or pessimism that businesses have about the future state of the economy. Higher business confidence often leads to increased investment demand.