4. Inflatlon and Interest rates The following table shows the average nominal interest rates on six-month treasury bills between 2005 and 2009, 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 2005 to 2009 (All rates are rounded to the nearest tenth of a percent.) Year Nominal Interest Rate (%) Inflation Rate (Wu) 2005 2.7 2.2 2006 4.2 2.0 2007 4.3 2.2 2008 2.5 2.3 2009 0.4 0.3 Source: Bank of Canada and Statistics Canada On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2005 to 2009. Next, use the green points (triangle symbol) to plot 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. 5.0 Nominal Interest Rate 4.0 A 3.0 al Interest Rate INTEREST RATE (Percent) 2.0 1.0 0 2004 2005 2006 2007 2008 2009 2010 YEAR According to the table, in which year did buyers of six-month treasury bills receive the highest real return on their investment? 2005 2006 O 2008 O 2009