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| Topic: |
Biographies
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| Number of pages / Number of words: |
3 / 602 |
Essay's paper body
It concludes by saying that Chairman Greenspan won't likely raise interest rates until 2003. A rising of interest rates would be an example of discretionary fiscal policy. In fact, a deliberate manipulation by the government to promote economic growth. If interest rates go up, than investment will go down, and aggregate supply will increase...
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People will not be willing to invest their money into houses and other financial assets causing the market supply to bump up. This clearly is an effort by the government to influence the supply curve. However, the article states that Greenspan wants to wait on this until 2003. This likely implies that he wants continued investment into the economy for the present time...
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General points of the essay
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term structure of interest rates
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Controlling the Economy with Interest Rates Does it Accomplish the Task on the Consumer Side?
The factors determining movements in the general level of variable and fixed term interest rates in Australia
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Discretionary policy
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