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Define absorption lines.
Real Rate
The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of borrowing and the true yield on investments.
Nominal Rate
The rate of interest quoted on loans and investments, without taking into account the compounding of interest within a year or the effects of inflation.
Realized Rate of Inflation
The actual rate of inflation over a specific period, as opposed to forecasts or estimates.
Interest Rate
Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
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