S.A algoT OTOEM Macro Topic 4.2 Nominal v. Real Interest Rates imon Part 3 - Making Connections- The table below shows the price index and nominal interest rate for the US between 1929 and 1933. Fill in the blanks on the table below then answer the questions. Year Price Index Nominal Interest Rate Real Interest Rate Inflation Rate 1929 7.00% 13.12 -1.15% 5.85% 1930 12.60 -3.96% 3.59% 1931 11.34 -10.0% 2.64% 1932 10.05 2.73% 161 beto axe ertl esw jeriW 1933 9.78 1.73%in imon ent emuzeA 12. Given that farming is a seasonal profession where farmers borrow money and pay it back after reasoning. crops are harvested, predict what likely happened to farmers between 1929 to 1932. Explain your eini lBen erl emuzeA 13. Based on the table above, what likely happened to the prices of crops for farmers between 1929 and 1932? Explain your reasoning. 14. Considering your answers above, explain why farmers faced some of the most significant challenges during the Great Depression. artwdent amused .8 erit larit 15. Explain why a little deflation puts downward pressure on prices and often leads to even more deflation. Part 4 - Stretch Your Thinking- Read the quote and answer the questions. incess "True individual freedom cannot exist without economic security and independence. People who are hungry and out of a job are the stuff of which dictatorships are made." - Franklin D. Roosevelt, US President 1933-1945 16. Why might farming be one of the most important industries in maintaining economic stability? 17. Research the Agricultural Adjustment Act (AAA) passed in 1933. Did President Roosevelt seek to influence crop prices or interest rates? Video Help: https://goo.gl/4ZEGch Copyright Jacob Clifford 2020. www.ACDCecon.com Annual license required. Do not use unless you have purchased a license