In: Economics
Long-term interest rates are rates of government bonds maturing in ten years.
The data is
Location ▾ | ▾ 1984 | ▾ 1985 | ▾ 1986 | ▾ 1987 | ▾ 1988 | ▾ 1989 | ▾ 1990 | ▾ 1991 | ▾ 1992 | ▾ 1993 | ▾ 1994 | ▾ 1995 | ▾ 1996 | ▾ 1997 | ▾ 1998 | ▾ 1999 | ▾ 2000 | ▾ 2001 | ▾ 2002 | ▾ 2003 | ▾ 2004 | ▾ 2005 | ▾ 2006 | ▾ 2007 | ▾ 2008 | ▾ 2009 | ▾ 2010 | ▾ 2011 | ▾ 2012 | ▾ 2013 | ▾ 2014 | ▾ 2015 |
Canada | 13.24 | 11.44 | 9.64 | 10.04 | 10.34 | 10.34 | 11.24 | 10.04 | 8.64 | 7.84 | 8.84 | 8.74 | 7.74 | 6.64 | 5.84 | 6.04 | 6.44 | 6.04 | 5.84 | 5.34 | 5.14 | 4.64 | 4.74 | 4.84 | 4.14 | 3.74 | 3.74 | 3.34 | 2.44 | 2.84 | 2.74 | 2.04 |
United States | 12.4 | 10.6 | 7.7 | 8.4 | 8.8 | 8.5 | 8.6 | 7.9 | 7 | 5.9 | 7.1 | 6.6 | 6.4 | 6.4 | 5.3 | 5.6 | 6 | 5 | 4.6 | 4 | 4.3 | 4.3 | 4.8 | 4.6 | 3.7 | 3.3 | 3.2 | 2.8 | 1.8 | 2.4 | 2.5 | 2.1 |
So average of Canada is 6.7 while that of US is 5.7.
The correct option is
c. The average real interest rate was 6.7 percent in Canada and 5.7 percent in the United States.
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