answersLogoWhite

0

There is not a direct link but high interest rates are associated with expectations of high rates of inflation. High inflation may be associated with high wage rises and so lower employment rates. Low employment rates would suggest excess labour supply. So, from one end of that chain to the other: high interest rates are associated with high labour supply.

User Avatar

Wiki User

7y ago

Still curious? Ask our experts.

Chat with our AI personalities

BlakeBlake
As your older brother, I've been where you are—maybe not exactly, but close enough.
Chat with Blake
TaigaTaiga
Every great hero faces trials, and you—yes, YOU—are no exception!
Chat with Taiga
BeauBeau
You're doing better than you think!
Chat with Beau

Add your answer:

Earn +20 pts
Q: What is the relationship between interest rate and labor supply?
Write your answer...
Submit
Still have questions?
magnify glass
imp