Essay on Current Economic Situation Of The United States
By following and tracking the changes and patterns it serves as a safety net, in the sense that we the United States hopefully never have to relive the horrible years that were experienced during the Great Depression. I hope you enjoy this paper.
A) Interest Rates: By looking at the graph chart below it shows how the interest rates have changed in the last five years. Beginning with March of 2010 and going through March of 2015. Below that you’ll notice I’ve included an overall explanation for these occurrences so that the reader will have a better understanding for these noted changes that are documented in official government logs.
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
03/05/15 0.02 0.02 0.08 0.25 0.65 1.05 1.57 1.90 2.11 2.49 2.71
03/05/10 0.11 0.15 0.20 0.38 0.91 1.43 2.35 3.10 3.69 4.49 4.64
B) Inflation: Mar 2010- 2.3 Mar 2015- 1.5
C) Unemployment Rate: Feb 2010- 9.8 Feb 2015- 5.5
2. Explain the changes
A) Interest Rates: The reason for the higher interest rates during 2010 was a result of the unexpected soar of fuel. The sharp 8.5% increase in gasoline resulted in 80% of all other items rising in costs, minus food and energy products. I will explain in simple terms what causes the interest rate to rise. When a person goes to a financial institution such as a bank to apply for a loan…