Low interest rates encourage the substitution of capital for labor,thereby depressing employment.

Name: Low interest rates encourage the substitution of capital for labor,thereby depressing employment.
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Question

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Low interest rates make it more attractive for businesses to invest in capital rather than hiring more workers. This can lead to a decrease in employment levels as businesses opt for automation and technology rather than human labor.

Low Interest Rates Encourage the Substitution of Capital for Labor,thereby