Below Is the Three-Year Bond Real Interest Rate from 2000-2015

question 96

Essay

Below is the three-year bond real interest rate from 2000-2015. Explain why the real interest rate is positive for most of the 2000s and what explains it being negative in 2008-2009 and 2010-2015. What explains the near-zero real interest rate in 2015? Assuming this interest rate was used to make loans, who benefits from interest rates post-2010?Figure 8.2: Three-Year Bond Real Interest Rate: 2000-2015
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)

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Definitions:

Muscle Cells

Specialized cells designed to contract and cause movement; can be classified as skeletal, cardiac, or smooth muscle cells.

Muscle Fibers

Individual cells of muscles that are long, cylindrical, and capable of contraction to facilitate body movements.

Spindle-Shaped Cells

Cells that taper at both ends and are found in smooth muscle tissues and some types of soft tissue.

Skeletal Muscle

A type of striated muscle tissue that is voluntarily controlled, responsible for movement of the skeleton.