In What Three Ways Do Interest Groups Influence Members of Congress

question 49

Essay

In what three ways do interest groups influence members of Congress?

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Definitions:

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.

Real Interest Rate

The interest rate that has been modified to account for inflation, showing the real cost of borrowing or the genuine investment return.

Fisher Effect

an economic theory proposing that the real interest rate is independent of monetary measures, especially the nominal interest rate and inflation rate.