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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
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)+
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