First,explain What the Nominal Interest Rate Represents

question 29

Essay

First,explain what the nominal interest rate represents.Second,explain what the real interest rate represents.

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Definitions:

Economic Benefits

The advantages or gains that an organization receives or expects to receive from its business activities.

Capital

Refers to the financial assets or resources that individuals, companies, or governments use to fund their operations and invest in their ventures.

Income

The money received, especially on a regular basis, for work or through investments.

Liability

A company's financial debt or obligations that arise during business operations, to be settled over time through the transfer of economic benefits.