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Unemployment is supposed to go up as interest rates go up. Not all downturns are as extreme as the great recession or the Great Depression
by 7speter 4y ago
Unemployment is supposed to go up as interest rates go up. Not all downturns are as extreme as the great recession or the Great Depression
- flanked-evergl 4y agoI have always understood it to be the other way round, lower interest rates make for higher employment as money is easier to come by. Here is a source that confirms my understanding : https://homework.study.com/explanation/what-is-the-relationship-between-interest-rates-and-employment.html https://homework.study.com/explanation/what-is-the-relations... Can you explain the reasoning behind your understanding or provide some source to back it up?
- sseagull 4y agoI think that is what the parent said. Interest rates go up, unemployment goes up/employment goes down. The reverse would then be true. (Unless the parent edited their comment)
- flanked-evergl 4y agoYeah, it does say it, maybe I just misread.