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

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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
Transcribed Image Text: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
(?)
Transcribed Image Text: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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