7 Inflation And Interest Rates The Following Table Shows The Average Nominal Interest Rates On Six Month Treasury Bills 1 (23.51 KiB) Viewed 50 times
7 Inflation And Interest Rates The Following Table Shows The Average Nominal Interest Rates On Six Month Treasury Bills 2 (27.3 KiB) Viewed 50 times
7 Inflation And Interest Rates The Following Table Shows The Average Nominal Interest Rates On Six Month Treasury Bills 3 (7.82 KiB) Viewed 50 times
7. Inflation and interest rates The following table shows the average nominal interest rates on six-month Treasury bills (indicating the amount of interest paid by the U.S. government when it issues debt) between 1997 and 2001. The table also shows the inflation rate for the years 1997 to 2001. (All rates are rounded to the nearest tenth of a percent.) Nominal Interest Rate Inflation Rate Year - (Percent) (Percent) 1997 5.2 2.3 1998 4.9 1.6 1999 4.8 2.2 2000 5.9. 3,4 2001 3.4 2.8 Source: "Economic Report of the President (2007), United States Government Printing Office, last modified February 1, 2007, accessed March 11, 2013, http://www.com.gov/deys/pkg/ERP-2007/pdt/ERP-2007.pdf. On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1997 to 2001. Next, use the green points (triangle symbol) to plot the real interest rates for those years.
On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1997 to 2001. Next, use the green points (triangle symbol) to plot the real interest rates for those years. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 60 -P 50 Nominal Interest Rate A 40 Real Interest Rate INTEREST RATE (Percent) 8 2 10 D 1996 1997 1996 1999 YEAR 2000 2001 2002
According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 1997 O 1998 O 1999 O2000 2001
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!