Which of the following correctly describes the effects of an increase in investment spending? Multiple choice question. Graph (B) because a downward movement along the supply curve reflects an increase in investment expenditures. Graph (A) because a rightward ward shift in the demand curve for loanable funds reflects an increase in investment expenditures. Graph (B) because a leftward shift in the demand curve for loanable funds reflects an increase in investment expenditures. Neither because both demand and supply should shift