If there is a factor that leads to businesses collectively lowering rates of return on investments, this reduces investment demand.
A fall in investment yield refers to when companies lower earnings expectations from investments.
This could be as a result of any number of factors such as political laws changing, the economy facing a downturn, or technological factors that lead to lower production.
The result of this would be that companies in general would try to avoid more investments as these would require more money from them, while bringing in less money in return.
As we know, the goal of a company is to make more returns for its owners so if investments are collectively expected to bring in lower rates of returns, businesses would simply demand less of those investments.
In conclusion, collectively lower rates on investments leads to lower investment demand.
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