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Interest rates were a major issue in the 1984 U.S. presidential debates.[1] Some politicians claimed that interest rates rose over the 1981-1983 period while others claimed rates fell. The table below shows data on interest rates and inflation for short term (1 year) bank loans in the relevant years leading up to the election.
year / interest rate (i) / inflation (pi)
1981 14.03% 10.3%
1982 10.69% 6.2%
1983 8.63% 3.2%
Briefly explain how both sides were right.
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