Lowering interest rates always guarantees an immediate increase in employment levels and economic output in the short run.

Lowering interest rates means that borrowing money becomes cheaper for both individuals and businesses. When people can borrow money easily, they are more likely to spend it on things like homes, cars, or starting new businesses. This increase in spending can lead to more jobs because companies may need to hire more workers to meet the rising demand for their products or services. However, it’s important to note that while lower interest rates can help boost the economy, they do not always guarantee an immediate increase in employment. For example, if businesses are still uncertain about the future, they may not hire more workers, even if borrowing costs are lower.