Consumer Price Index for All Urban Consumers: All Items in U.S. City Average DOWNLOAD (CPIAUCSL) Observation: Units: 1Y | 5Y | 10Y | 1947-C to 2022-C EDIT GRAPH Jan 2022: 281.933 (+ Index 1982-1984=100, Max more) Seasonally Adjusted Updated: 7:42 AM CST Frequency: Monthly FRED ~ - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average 320 280 240 200 Index 1982-1984=100 160 120 80 40 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 1950 1960 1970 Shaded areas indicate U.S. recessions. Source: U.S. Bureau of Labor Statistics fred.stlouisfed.org . .Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity (GS10) DOWNLOAD Observation: Units: 1Y | 5Y | 10Y | 1953-C to 2022-C EDIT GRAPH Jan 2022: 1.76 (+ Percent, Max more) Not Seasonally Adjusted Updated: Feb 1, 2022 Frequency: Monthly FRED ~ - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity 17.5 15.0 12.5 10.0 Percent 7.5 5.0 2.5 0.0 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 1960 2010 202dll Shaded areas indicate U.S. recessionSource: Board of Governors of the Federal Reserve System (US) fred.stlouisfed.org2. Download from the FRED database (link: https://fred.stlouisfed.org/) the time series of the CPI (CPI'AUCSL)1 and compare it to the series of the interest rates of 10-year US Treasury Bond rate (G810) and 3Month Treasury Bill rate (TB3MS) showing them in one plot from 1945 to the most update day. (1) What is the correlation between the three, and why are they correlated in that way? (5 points) (2) Are there cases of negative real interest rates, and if yes, why does it occur? (Hint: You may want to check the later part of Chapter 4 of our textbook.) (10 points) 3-Month Treasury Bill Secondary Market Rate (TB3MS) DOWNLOAD Observation: Units: 1Y | 5Y | 10Y | 1934-C to 2022-C EDIT GRAPH Jan 2022: 0.15 (+ Percent, Max more) Not Seasonally Adjusted Updated: Feb 1, 2022 Frequency: Monthly FRED - 3-Month Treasury Bill Secondary Market Rate 17.5 15.0 12.5 10.0 Percent 7.5 5.0 2.5 0.0 M 1940 1950 1960 1970 1980 1990 2000 2010 2020 1940 1960 201 Shaded areas indicate U.S. recessionSource: Board of Governors of the Federal Reserve System (US) fred.stlouisfed.org