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CENGAGE |MINDTAP Aplia Homework: Unemployment and Inflation Nominal Interest Rate Inflation Rate Year (Percent) (Percent) 1971 1972 4.5 3.2 1973 7.2 6.2 1974 7.9 11.0

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CENGAGE |MINDTAP Aplia Homework: Unemployment and Inflation Nominal Interest Rate Inflation Rate Year (Percent) (Percent) 1971 1972 4.5 3.2 1973 7.2 6.2 1974 7.9 11.0 1975 6.1 9.1 Source: "Economic Report of the President (2007)," United States Government Printing Office, last modified February 1, 2007, accessed March 11, 2013, http://www.gpo.gov/tdsys/pkg/ERP-2007/pdr/ERP-2007.par. On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1971 to 1975. 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, (?) Nominal Interest Rate Real Interest Rate INTEREST RATE (Percent) 210 1971 1872 1975 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 1971 1972 O 1973 ype here to search N

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