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Instructions: Identify the terms and briefly state their historical significance.
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Inflation Rate
Over time, the increment in the price level percentage for goods and services in an economy.
Tax Rate
The proportion of income that is required to be paid as tax by a person or a company.
Real Interest Rate
The real interest rate is the interest rate adjusted for inflation, representing the true cost of borrowing and the true yield for savers.
Nominal Return
The rate of return on an investment without adjusting for inflation.
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