-2% 10% 4% 0% 2% 4% 6% 8% 1956 1958 1960 1962 1964 1966 1968 1972 period might have led to temporarily negative real interest rates. 1974 1976 197 6. Real and nominal interest rates (2 MARKS) (Maximum length: half-page) 198 Real Fed Funds Rate short- run money market interest rate) from 1956-2010. Why are the real rates sometimes negative? Use the Fisher Equation and speculate about how short-run output gaps over that Figure 1 shows the trend in real rates for the Federal Funds rate in the US (equivalent to the 198 Real Fed Funds Rate (Year over Year) 198 198 198 1990 1992 Median 1998 2000 2002 2004 2006 2008 2010