Equation (10) i = r + πe where i = nominal interest rate r = real interest rate πe = expected inflation. (See Appendix

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Equation (10) i = r +
πe
where
i = nominal interest
rate
r = real interest
rate
πe = expected inflation.
(See Appendix B to Chapter 1 on “Using FRED” which is the
database at the Federal Reserve Bank of St. Louis.)
First Business Day in Year Chosen
(A)
One-Year Nominal Treasury Rate on that Day (B)
1970s
1990s
2010s
First Business Day in Year Chosen
(A)
One-Year Nominal Treasury Rate on that Day (B)
Chosen Year's Annual CPI
(%)
(C)
Chosen Year’s Annual Implicit Price Deflator (%)
(D)
1970s
1990s
2010s
First Business Day in Year Chosen
(A)
One-Year Nominal Treasury Rate on that Day (B)
Chosen Year’s Annual CPI
(%)
(C)
Chosen Year’s Annual Implicit Price Deflator (%)
(D)
Year's Real Rate based on CPI
= (B – C)
Year's Real Rate based on Implicit Price Deflator
= (B – D)
1970s
1990s
2010s
Based on your results, answer the following questions: