Due on Mar 4 at 11:59 PM CSTOn the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1963 to 1967. Next, use the greenpoints (triangle symbol) to plot the real interest rates for those years.INTEREST RATE (Percent)6.05.04.03.0201.019621963196419651963196619641965YEAR196619671968According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment?-0-Nominal Interest RateReal Interest Rate 4. Inflation and interest ratesThe following table shows the average nominal interest rates on six-month Treasury bills between 1963 and 1967, 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 1963 to 1967. (Allrates are rounded to the nearest tenth of a percent.)Year19631964196519661967Nominal Interest Rate(Percent)3.33.74.16.05.14.65.0Inflation Rate(Percent)1.31.31.6Source: "Economic Report of the President (2007)." United States Government Printing Office, last modified February 1, 2007, accessed March 11, 2013,http://www.gpo.gov/fdsys/pkg/ERP-2007/pdf/ERP-2007.pdf.2.93.1On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1963 to 1967. Next, use the greenpoints (triangle symbol) to plot the real interest rates for those years.Nominal Interest Rate(?)

The real interest rate is the nominal interest rate minus the inflation rate, which means that it's…

Due on Mar 4 at 11:59 PM CST On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1963 to 1967. Next, use the green points (triangle symbol) to plot the real interest rates for those years. INTEREST RATE (Percent) 6.0 5.0 4.0 3.0 20 1.0 1962 1963 1964 1965 1963 1966 1964 1965 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 1966 1967 1968 -0- Nominal Interest Rate Real Interest Rate

Due on Mar 4 at 11:59 PM CST On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1963 to 1967. Next, use the green points (triangle symbol) to plot the real interest rates for those years. INTEREST RATE (Percent) 6.0 5.0 4.0 3.0 20 1.0 1962 1963 1964 1965 1963 1966 1964 1965 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 1966 1967 1968 -0- Nominal Interest Rate Real Interest Rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Due on Mar 4 at 11:59 PM CST
On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1963 to 1967. Next, use the green
points (triangle symbol) to plot the real interest rates for those years.
INTEREST RATE (Percent)
6.0
5.0
4.0
3.0
20
1.0
1962
1963
1964
1965
1963
1966
1964
1965
YEAR
1966
1967
1968
According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment?
-0-
Nominal Interest Rate
Real Interest Rate

4. Inflation and interest rates
The following table shows the average nominal interest rates on six-month Treasury bills between 1963 and 1967, 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 1963 to 1967. (All
rates are rounded to the nearest tenth of a percent.)
Year
1963
1964
1965
1966
1967
Nominal Interest Rate
(Percent)
3.3
3.7
4.1
6.0
5.1
4.6
5.0
Inflation Rate
(Percent)
1.3
1.3
1.6
Source: "Economic Report of the President (2007)." United States Government Printing Office, last modified February 1, 2007, accessed March 11, 2013,
http://www.gpo.gov/fdsys/pkg/ERP-2007/pdf/ERP-2007.pdf.
2.9
3.1
On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1963 to 1967. Next, use the green
points (triangle symbol) to plot the real interest rates for those years.
Nominal Interest Rate
(?)

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