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Question: refer to the diagram to the right where a nominal...

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Refer to the diagram to the right where a nominal interest rate (the 6-month annualized Treasury rate) and the rate of inflation are plotted. In which of the three decades (1970-79, 1980-89, 1990-99) is the inflation rate the e 14- a 13 most stable? The inflation rate is most stable during the In which of the three decades does the economy experience disinflation? Disinflation is experienced during the In which of the three decades is the real interest rate, on average, the highest? 0 12 On average, the real interest rate is highest during the 1970 1975 1980 1985 1990 1995 2000 2005 Year

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