Question 3

3. Comparing salaries from different times Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures ( unadjusted for inflation). To convert the original earnings of Casper, Watson, and Stadler, use the formula for converting dollar figures from an earlier era into year 2017 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar. Nominal Winnings U.S. CPI Year Golfer (Dollars) (1983 = 100) Winnings in 2017 Dollars 1968 Billy Casper 205,169 34.8 1980 Tom Watson 530,808 82.4 1982 Craig Stadler 446,462 96.5 2017 Justin Thomas 9,921,560 245.1 9,921,560 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is the same as the golfer with the highest PGA winnings after adjusting for inflation. True O False Grade It Now Save & Continue4. Inflation and interest rates The following table gives the average nominal interest rates on six-month Treasury bills spanning the years 2014 and 2018, which determined the nominal interest rate paid by the U.S. government when it issued debt in that time period. The table also gives the inflation rate for the years 2014 to 2018. (All rates rounded to the nearest 0.1 percent.) Nominal Interest Rate Inflation Rate Year (Percent) (Percent) 2014 0.1 1.6 2015 0.2 0.1 2016 0.5 1.3 2017 1.1 2.1 2018 2.1 2.4 Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stlouisfed.org.On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. (?) 3.0 Nominal Interest Rate 2.0 Real Interest Rate 1.0 INTEREST RATE (Percent) 0 -1.0 20 2013 2014 2015 2016 2017 2018 2019 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? O 2014 O 2015 2016 O 2017 O 2018