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4. Inflation and interest rates The following table shows the average nominal interest rates on sixmonth treasury bills between 2008 and 2012, which determined the

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4. Inflation and interest rates The following table shows the average nominal interest rates on sixmonth treasury bills between 2008 and 2012, which determined the nominal interest rate that the Canadian government paid when it issued debt in those years. The table also shows the inflation rate for the years 2008 to 2012. (All rates are rounded to the nearest tenth of a percent.) Year Nominal Interest Rate (We) Ination Rate (\"{0} 2008 2.5 2.3 2009 0.4 0.3 2010 0.8 1.8 2011 1.0 2.9 2012 1.0 1.5 Source: Bank of Canada and Statistics Canada On the foowing graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2008 to 2012. Next, use the green points (triangle symbol) to piot the real interest rates for those years. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. \fAccording to the table, in which year did buyers of sixmonth treasury bills receive the highest real return on their investment? C) 2010 C) 2008 C) 2012 C) 2009 C) 2011

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