The following figure shows the inflation rate and ten-year bond yield. Refer to this figure when answering
Figure 14.4: Inflation and 10-Year Bond Yields
-Consider Figure 14.4 above. Throughout the first three-fourths or so of 2009 the:
A) real interest rate on 10-year bonds was lower than the nominal interest rate
B) 10-year-bonds' nominal interest rate was higher than the real interest rate
C) inflation rate was negative
D) real interest rate was negative
E) inflation rate was higher than the nominal interest rate

Question

The following figure shows the inflation rate and ten-year bond yield. Refer to this figure when answering  
Figure 14.4: Inflation and 10-Year Bond Yields 
-Consider Figure 14.4 above. Throughout the first three-fourths or so of 2009 the:
A) real interest rate on 10-year bonds was lower than the nominal interest rate 
B) 10-year-bonds' nominal interest rate was higher than the real interest rate 
C) inflation rate was negative 
D) real interest rate was negative 
E) inflation rate was higher than the nominal interest rate

Quizplus · Accepted Answer

The Answer of The following figure shows the inflation rate and ten-year bond yield. Refer to this figure when answering  
Figure 14.4: Inflation and 10-Year Bond Yields 
-Consider Figure 14.4 above. Throughout the first three-fourths or so of 2009 the:
A) real interest rate on 10-year bonds was lower than the nominal interest rate 
B) 10-year-bonds' nominal interest rate was higher than the real interest rate 
C) inflation rate was negative 
D) real interest rate was negative 
E) inflation rate was higher than the nominal interest rate

The Following Figure Shows the Inflation Rate and Ten-Year Bond