Investment Demand

Investment demand refers to the desire of businesses and individuals to spend money on projects, equipment, or property that can generate future income or profits. It reflects how much people are willing to invest in things like new factories, technology, or real estate, based on expectations of better returns. Factors influencing this demand include interest rates, business optimism, technological advancements, and economic conditions. When investment demand is strong, it can stimulate economic growth by increasing production and employment. Conversely, low investment demand can slow down economic progress, as fewer resources are allocated toward expanding productive capacity.