Question: TBill rates 2020 Here are a plot and regression output showing the federal rate on 3-month Treasury bills from 1950 to 1980, and a regression

TBill rates 2020 Here are a plot and regression output showing the federal rate on 3-month Treasury bills from 1950 to 1980, and a regression model fit to the relationship between the Rate (in %) and Years Since 1950 (https://fred.

stlouisfed.org/series/TB3MS).

a) What is the correlation between Rate and Year?

b) Interpret the slope and intercept.

c) What does this model predict for the interest rate in the year 2030?

d) Would you expect this prediction to be accurate?

Explain.

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