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 ratesThe following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominalinterest 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. (Allrates are rounded to the nearest tenth of a percent.)Nominal Interest RateInflation RateYear(Percent)(Percent)20140.11.620150.20.120160.51.320171.12.120182.12.4Source: "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 greenpoints (triangle symbol) to plot the real interest rates for those years. 3.0Nominal Interest Rate2.0Real Interest Rate1.0-1.0-2.02013201420152016201720182019YEARINTEREST RATE (Percent)

According to Fisher's Equation, Real interest rate= (Nominal interest rate - Inflation).

Answered: According to the table, in which year…

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

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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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

Formula Formula ROI (%) = Net Income Principal Amount × 100

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