Examlex
According to the quantity theory of money, a 15 percent increase in the quantity of money creates a 15 percent rise in
Real Interest Rate
It represents the rate of interest an investor expects to receive after allowing for inflation, fundamentally indicating the true return on an investment.
Inflation Rate
The annual rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation to maintain a healthy economy.
Nominal Interest Rate
The headline rate of interest paid on a loan or received on an investment, not adjusted for inflation.
Consumer Price Index
An index that measures the change in price level of a market basket of consumer goods and services purchased by households.
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