490 18-8 Nv的 Why the Aggregate-Demand Curve Is Downward Sloping(2) The Price Level and Investment:The Interest Rate Effect -A lower price level reduces the interest rate,which encourages greater spending on investment goods. This increase in investment spending means a larger quantity of goods and services demanded. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 18-8 Why the Aggregate-Demand Curve Is Downward Sloping(2) • The Price Level and Investment: The Interest Rate Effect – A lower price level reduces the interest rate, which encourages greater spending on investment goods. – This increase in investment spending means a larger quantity of goods and services demanded