The Principle That the Nominal Interest Rate Is the Sum

question 72

Short Answer

The principle that the nominal interest rate is the sum of real interest rate and expected rate of inflation over a specific period is called the ________.

---

Definitions:

Government Intervention

The active involvement of a government in the economic, social, or political matters of a country, typically to correct market failures or promote social welfare.

Black Market

An illegal trade of goods or services where transactions occur beyond governmental control or are not sanctioned by law.

Illegal

Activities or actions that are forbidden by law and subject to legal penalties.

Higher Value Use

Utilizing resources or assets in a way that yields the most benefit or profit.