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The prefix pseudo- means above.
Nominal Interest Rate
indicates the percentage increase in money that the borrower pays the lender, not taking into account the eroding effects of inflation on the real value of the money.
Inflation Rate
The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.
Real Interest Rate
The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of borrowing and the true yield on investments.
Equilibrium Interest Rate
The interest rate at which the demand for funds (borrowing) equates with the supply of funds (savings) in the financial market.
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