A fall in long-term interest rates leads to a ________.
A) leftward shift of the labor demand curve
B) rightward shift of the labor demand curve
C) leftward shift of the labor supply curve
D) rightward shift of the labor supply curve

Question

Quizplus · Accepted Answer

A fall in long-term interest rates typically results in an increase in investment, which in turn leads to an increase in demand for labor. This shift in demand for labor causes the labor demand curve to shift to the right.

A Fall in Long-Term Interest Rates Leads to a ________