Business, 21.03.2020 09:41, gabriellabadon2

The introduction of a new technology, such as computers, might be expected to improve labor productivity, making businesses more able and willing to pay a higher price for capital. This would put upward pressure on interest rates. However, the productivity improvements might give rise to lower inflationary expectations, which would put downward pressure on interest rates. Thus, the net effect of the new technology on interest rates might be uncertain.
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The introduction of a new technology, such as computers, might be expected to improve labor producti...