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What is disparagement?
Real Interest Rate
The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or real yield on investment.
Inflation Rate
How quickly the average cost of goods and services goes up, resulting in a drop in the ability to purchase.
Nominal Interest Rate
The interest rate before adjustments for inflation, representing the face value of interest payments on loans or investments.
Fisher Effect
The one-for-one adjustment of the nominal interest rate to the inflation rate
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