Home / Expert Answers / Economics / the-following-table-gives-the-average-nominal-interest-rates-on-six-month-treasury-bills-spanning-t-pa511

(Solved): The following table gives the average nominal interest rates on six-month Treasury bills spanning t ...



student submitted image, transcription available below
The following table gives the average nominal interest rates on six-month Treasury bills spanning the years 2014 and 2018 , which determined the nominal interest rate paid by the U.S. government when it issued debt in that time period. The table also gives the inflation rate for the years 2014 2018. (All rates rounded to the nearest 0.1 percent.) 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. 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


We have an Answer from Expert

View Expert Answer

Expert Answer



Let us first calculate the real interest rates for each of the given year using the formula:
We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe