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According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 2014   2015   2016   2017   2018

According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 2014   2015   2016   2017   2018

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
Problem 6PA
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According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment?
2014
 
2015
 
2016
 
2017
 
2018
4. Inflation and interest rates The following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 2014 to 2018. (All rates are rounded to the nearest tenth of a percent.) Nominal Interest Rate Inflation Rate Year (Percent) (Percent) 2014 0.1 1.6 2015 0.2 0.1 2016 0.5 1.3 2017 1.1 2.1 2018 2.1 2.4 Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stlouisfed.org. 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.
Transcribed Image Text:4. Inflation and interest rates The following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 2014 to 2018. (All rates are rounded to the nearest tenth of a percent.) Nominal Interest Rate Inflation Rate Year (Percent) (Percent) 2014 0.1 1.6 2015 0.2 0.1 2016 0.5 1.3 2017 1.1 2.1 2018 2.1 2.4 Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stlouisfed.org. 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.
3.0 Nominal Interest Rate 2.0 Real Interest Rate 1.0 -1.0 -2.0 2013 2014 2015 2016 2017 2018 2019 YEAR INTEREST RATE (Percent)
Transcribed Image Text:3.0 Nominal Interest Rate 2.0 Real Interest Rate 1.0 -1.0 -2.0 2013 2014 2015 2016 2017 2018 2019 YEAR INTEREST RATE (Percent)
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