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Real Discount Rate
The rate used to discount future cash flows to their present value, adjusting for inflation.
Nominal Discount Rate
The rate of interest quoted or advertised on a loan or investment, not adjusted for inflation.
Inflation
The speed at which overall prices for goods and services increase, leading to a decline in purchasing power.
Nominal Interest Rates
The rate of interest before adjustment for inflation, representing the face value of borrowing costs or investment returns.
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