If at the same time that the demand for human capital increases, there is also a reduction in the supply of funds for human capital investment, interest rates and the cost of investment _____, and the investment in human capital _____.

Question

Quizplus · Accepted Answer

When demand for human capital increases while the supply of funds for human capital investment decreases, interest rates and the cost of investment will increase due to higher demand and lower supply of funds. However, the actual investment in human capital may rise, fall, or stay the same depending on how individuals and institutions respond to the higher costs and interest rates.

If at the Same Time That the Demand for Human