If, at the same time that the demand for human capital decreases, there is also an increase 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 the demand for human capital decreases while the supply of funds for human capital investment increases, interest rates are likely to decrease due to the increased supply of funds. However, the effect on the investment in human capital is uncertain (may rise, fall, or stay the same) because it depends on how the decrease in demand interacts with the lower cost of investment due to lower interest rates.

If, at the Same Time That the Demand for Human