lawn mower oil change Famous British economist hicks and others argue that the above theory did not consider the factor of income, and therefore unable to determine the level of interest rates, in 1937, and puts forward the is-lm model on the basis of general equilibrium theory. It establishes a theory of interest rates and income at the same time that the four factors of savings and investment, money supply and monetary demand interact. The market believes the next rate increase could happen in May 2018, as officials take action to prevent a record low unemployment and wage inflation leading to inflation. Market is generally believed that tax reform important progress and good economic data pushed up investor optimism about the U.S. economy growth, coupled with a near record levels of long positions covering, some traders selling positions betting on further flattening of the yield curve, lead to long-term Treasury yields climbed sharply this week. The report also supports the government's plan to cut its annual budget deficit this year.