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2. This question practices real vs. nominal concepts and also highlights another feature of the data we want to understand with respect to economic growthreturns on capital and how they relate to real interest rates. 1970-1980 1980-1990 1990-2000 2000-2018 1970-2018 Growth rate of Consumer Price Index 57.22 111.84 162.57 220.33 151.17 1 Year Treasury Constant Maturity Rate (percent) 7.51 9.21 5.18 1.63 5.18 Different between treasury rate and growth rate of CPI ? ? ? ? ? c. Construct a graph that plots the difference between the Treasury Rate and the Growth Rate of the CPI over the entire time period. d. Be prepared to discuss several features of this data in class. 0 What is the interpretation of the Growth Rate of the CPI? What is the interpretation of the difference between the Treasury Rate and the Growth Rate of the CPI? o How has the series difference between the Treasury Rate and the Growth Rate evolved over the past 50 years? 0 Does this have anything to do with " returns on ca pital"? Think about the opportunity cost of investing one dollar in capital? Well you could have invested in a treasury bill...so one dollar invested in capital should give a similar return to one dollar invented in a treasury bill