In 197 9, the shortterm nominal interest rate on threemonth Treasury bills averaged 10% and the GDP deator rose om 50.88 to 55.22. What was the annual rate of ination in 1979? What was the real interest rate in 1979? Were real interest rates higher in 1979, or in 1998 when the short-term nominal interest rate on threemonth Treasury bills was 4.8%, and the ination rate was 2.6%? Which interest rate concept the nominal interest rate or the real interest rate do lenders and borrowers care more about? Why