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At the start of 2008, one-year U.S. government bond rates were about 3.3%, while the inflation rate that year was 0.1%. At the start of

At the start of 2008, one-year U.S. government bond rates were about 3.3%, while the inflation rate that year was 0.1%. At the start of 2018, one-year interest rates were about 1.8%, and the inflation rate that year was about 1.9%. Note that the real interest rate was negative in 2018, indicating that interest rates were insufficient to keep up with inflation. Investors in U.S. government bonds were able to buy less at the end of the year than they could have purchased at the start of the year. Question Worth 10 points 2) . Based on the data shown for 2018, why were investors able to purchase less U.S. government bonds at the end of

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