Examlex
In the mid-1980s,sociologist Charles Perrow coined the term:
Real Interest Rate
The interest rate after adjusting for inflation, reflecting the true cost of borrowing and the real yield to investors.
Deflation
A decrease in the general price level of goods and services, often causing an increase in the value of money.
Nominal Interest Rate
The stated or face interest rate of a loan or financial product, not adjusted for inflation.
Purchasing Power
The ability of an individual or group to buy goods and services with a given amount of money.
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