Problem
The chapter suggested that because large increases in oil prices transfer income to countries that cannot rapidly increase their consumption or investment and therefore must save their windfalls, world real interest rates fall in the short run. Put together data on the U.S. real interest rate for 1970-1976, a period that includes the first OPEC oil shock. How did the U.S. real interest rate behave?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.