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How does the real interest affect households' decisions about saving?
Moderate Inflation
A situation where the general price level of goods and services rises at a modest pace.
Inflation Rate
The rate at which the overall price level of goods and services increases, leading to a decrease in purchasing power.
Price Index
A statistical measure that examines the weighted average of prices of a basket of consumer goods and services, used to monitor inflation or deflation.
Average Annual Rate
Typically refers to the mean percentage rate at which a value (e.g., investment or population) grows annually.
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