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The following table gives the average nominal interest rates on six-month Treasury bells spanning nominal interest rate paid by the U.S. government when it issued debt in that time period. The table also gives the inflation rate for the years 2014 to 2018. (All rates rounded to the nearest 0.1 percent.) Year 2014 2015 2016 2017 2018 TRATE (Percent) Nominal Interest Rate (Percent) 0.1 30 0.2 0.5 2.0 1.1 2.1 Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stiouisfed.org Inflation Rate (Percent) 1.6 0.1 1.3 2.1 On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. 2.4 -0- Nominal Interest Rate Real Interest Rate ?

The following table gives the average nominal interest rates on six-month Treasury bells spanning nominal interest rate paid by the U.S. government when it issued debt in that time period. The table also gives the inflation rate for the years 2014 to 2018. (All rates rounded to the nearest 0.1 percent.) Year 2014 2015 2016 2017 2018 TRATE (Percent) Nominal Interest Rate (Percent) 0.1 30 0.2 0.5 2.0 1.1 2.1 Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stiouisfed.org Inflation Rate (Percent) 1.6 0.1 1.3 2.1 On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. 2.4 -0- Nominal Interest Rate Real Interest Rate ?

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: Money Growth And Intlation
Section: Chapter Questions
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On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. INTEREST RATE (Percent) 30 20 10 o 10 20 2013 2014 2015 2016 2017 2014 2018 2015 2016 YEAR 2017 2018 According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 2019 Nominal Interest Rate Real Interest Rate ?
Transcribed Image Text:On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. INTEREST RATE (Percent) 30 20 10 o 10 20 2013 2014 2015 2016 2017 2014 2018 2015 2016 YEAR 2017 2018 According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 2019 Nominal Interest Rate Real Interest Rate ?
4. Inflation and interest rates The following table gives the average nominal interest rates on six-month Treasury bills spanning the years 2014 and 2018, which determined the nominal interest rate paid by the U.S. government when it issued debt in that time period. The table also gives the inflation rate for the years 2014 to 2018. (All rates rounded to the nearest 0.1 percent.) Year 2014 2015 2016 2017 2018 INTEREST RATE (Percent) Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stiouisfed.org. Nominal Interest Rate (Percent) 0.1 0.2 0.5 1.1 2.1 On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. 2.0 Inflation Rate (Percent) 1.6 0.1 1.3 2.1 2.4 10 Nominal Interest Rate Real Interest Rate ?
Transcribed Image Text:4. Inflation and interest rates The following table gives the average nominal interest rates on six-month Treasury bills spanning the years 2014 and 2018, which determined the nominal interest rate paid by the U.S. government when it issued debt in that time period. The table also gives the inflation rate for the years 2014 to 2018. (All rates rounded to the nearest 0.1 percent.) Year 2014 2015 2016 2017 2018 INTEREST RATE (Percent) Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stiouisfed.org. Nominal Interest Rate (Percent) 0.1 0.2 0.5 1.1 2.1 On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. 2.0 Inflation Rate (Percent) 1.6 0.1 1.3 2.1 2.4 10 Nominal Interest Rate Real Interest Rate ?
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