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The first diagram below shows data for the interest rate on 10-year bonds issued by the U.S. Treasury (i.e., the U.S. Government) from 2000 to

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The first diagram below shows data for the interest rate on 10-year bonds issued by the U.S. Treasury (i.e., the U.S. Government) from 2000 to 2020. Furthermore, the diagram includes the inflation rate experienced in the U.S. from 2000 to 2020. a. How would you describe the relationship between the two?

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\f10-year euro bond rate, euro area inflation rate Interest rate 8% Inflation rate 6 4 ON -2 1996 2000 2004 2008 2012 2016 2020 Year

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