Labour intensive: Uses a relatively high number of employees compared with the amount of capital used. It follows that if we find a case during which increased savings do not cause any appreciable fall in the fee of interest this indicates that the capital market has its suspicions—which may turn into totally unjustified—in regards to the permanent character of this sudden enhance in the demand for securities.
If due to this fact in a despair we find the long-term fee of interest remaining relatively inflexible this indicates that, rightly or wrongly, the capital market believes in the continued existence of …