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The following US data is taken from FRED: FRED -5-Year Treasury Constant Maturity Rate . 5-Year Treasury Inflation-Indexed Security, Constant Maturity (Percent) Ww 2007-01-01 2007-07-01

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The following US data is taken from FRED: FRED -5-Year Treasury Constant Maturity Rate . 5-Year Treasury Inflation-Indexed Security, Constant Maturity (Percent) Ww 2007-01-01 2007-07-01 2008-01-01 2008-07-01 2009-01-01 2009-07-01 2010-01-01 research.stlouisfed.org myf.red/g/3mnn a). [4 marks) Which of the two time series of interest rates indicate the real interest rates? b). [4 marks) Please write down the Fisher equation: c). [4 marks) In early 2008, what was roughly the financial market's expected yearly rate of inflation over the next 5 years? How about in early 2009

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