Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below displays the real crude oil price per barrel, nominal interest rate, real interest rate, and real GDP growth rate in the United

image text in transcribed
image text in transcribed
The table below displays the real crude oil price per barrel, nominal interest rate, real interest rate, and real GDP growth rate in the United States from 2011 to 2020. The inflation data were collected from InflationData.com and other data were collected from the World Development Indicators.+ Year+ 2011+ 2012+7 2013+7 2014 2015+7 2016+ 2017+ 2018+7 2019+ 2020- Real 108.804 105.90- 110.02+ 101.61+ 49.640 42.52+ 50.42+ 64.67+ 54.994 35.00+ Crude oil price ($)+ Nominal 3.25+7 3.25+ 3.25+ 3.25+ 3.26+ 3.51+ 4.10+ 4.90+ 5.28+ 3.540 interest rate (%)+ Real 1.14+ 1.31+ 1.47+ 1.37+ 2.294 2.44+ |2.18+ |2.44+ 3.44 2.35+ interest rate (%)+ Real 1.55+ 2.25+ 1.84+ 2.53+ 3.08+ 1.71+ 2.33+ 3.00+ 2.16+ -3.64++ GDP growth rate (%)+ Use the above sample to answer the following questions.+ + (a) Divide the sample into two groups based on the average real interest rate and compute the average real GDP growth rate in each group. Show your answer in the following table and state the observed relationship between real interest rate and real GDP growth rate in one sentence. (3 marks)+

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Mis

Authors: Kenneth Laudon

8th Edition

1292153776, 9781292153773

More Books

Students also viewed these Economics questions