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The following table gives the average nominal interest rates on six-month Treasury bills spanning the years 2004 and 2008, which determined the tominal interest rate
The following table gives the average nominal interest rates on six-month Treasury bills spanning the years 2004 and 2008, which determined the tominal 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 2004 to 2008. (All rates rounded to the nearest 0.1 percent.) Nominal Interest Rate Inflation Rate Year (Percent) (Percent) 2004 1.6 2.7 2005 3.4 3.4 2006 4.8 3.2 2007 4.4 2.9 2002 1.6 3.8 Source: "FRIED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https:/fired.stlouisfed.org. On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2004 to 2008. Next, use the green points (triangle symbol) to plot the real interest rates for those years. (?) -0 4.0 Nominal Interest Rate A 20 Real Interest Rate INTEREST RATE (Percent) 10 1.0 -20 -3.0 2003 2004 200 2006 2007 2008 2009 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 2004 2005 O 2006 2007 2008
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