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Putting locks on mailboxes is an example of:
Real Interest Rate
The rate of interest an investor expects to receive after allowing for inflation.
CPI
Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.
Fisher Effect
A theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates.
Nominal Interest Rate
The interest rate as stated without adjustment for inflation, representing the face value of financial transactions.
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