I need help with a quick excel problem set super easy just attach screenshots of excel! Based on the data set you choose, we will calculate the real interest rate (following Fisher equation: ( i = r + ) Please find your own 2 economic data on FRED. https://fred.stlouisfed.org/.

1. Which two data did you choose? (At least one of the two variables must be one that I did not choose.)

1) Nominal interest rate:

a) Federal funds rate (DFF)

b)4-Week Treasury Bill Secondary Market Rate, Discount Basis (DTB4WK)

c)3-Month Treasury Bill Secondary Market Rate, Discount Basis (TB3MS)

d)6-Month Treasury Bill Secondary Market Rate, Discount Basis (DTB6)

e)1-Year Treasury Bill Secondary Market Rate, Discount Basis (DTB1YR)

2) Inflation rate

a) Use of GDP deflator (USAGDPDEFQISMEI) Quarterly

b) Use of CPI (CORESTICKM159SFRBATL) Monthly

2. Any reason for choosing these data?

3. Please calculate the real interest rate based on the Fisher Equation. Please paste a screenshot of an excel spreadsheet reporting 3 economic data. (Not a full column, just show the partial)

4. Please derive the real interest rate graph.

5. What is your conclusion? Can you find the negative value of real interest rate?

1. Data Choice: * Nominal Interest Rate: 3-Month Treasury Bill Secondary Market Rate, Discount Basis (TB3MS) |nflation Rate: Use of CPl (CORESTICKM159SFRBATL) Monthly 2. Reason for Choosing Data: TB3MS is a commonly used short-term interest rate indicator. * CORESTICKM159SFRBATL is a monthly CPI series which reflects changes in consumer prices, a commaon measure of inflation. 3. Calculating Real Interest Rate: = |In Excel, import the data for TB3MS and CORESTICKM159SFRBATL. Create a new column for the real interest rate calculation. Use the Fisher equation: 2 = r + T, where 7 is the nominal interest rate, r is the real interest rate, and 7 is the inflation rate. * The formulain Excel for calculating real interest rate would be something like: Real Interest Rate = Nominal Interest Rate Inflation Rate. 4. Deriving Real Interest Rate Graph: = After calculating the real interest rate for each data point, plot it against time (assuming time is on the horizontal axis). Create a line graph where the x-axis represents time and the y-axis represents the real interest rate. 5. Conclusion: s The real interest rate reflects the nominal interest rate adjusted for inflation. If inflation is higher than the nominal interest rate, the real interest rate will be negative, indicating a decrease in purchasing power for lenders. * Whether the real interest rate is negative or positive depends on the relationship between the nominal interest rate and the inflation rate