Question

The following table shows the average nominal interest rates on six-month Treasury bills between 1963 and 1967, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 1963 to 1967. (All rates are rounded to the nearest tenth of a percent.)   

Year	Nominal Interest Rate (Percent)	Inflation Rate(Percent)
1963	3.3	1.3
1964	3.7	1.3
1965	4.1	1.6
1966	5.1	2.9
1967	4.6	3.1

On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1997 to 2001. Next, use the green points (triangle symbol) to plot the real interest rates for those years.

According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? 

Answer 1