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Relatively rapid U.S. growth between 2002 and 2006 contributed to large U.S. trade deficits by
Rate of Inflation
The measure of how the general level of prices for goods and services is rising, and, subsequently, how purchasing power is falling over time.
Nominal Interest Rate
The interest rate before adjustments for inflation, representing the raw rate of interest paid on savings or charged on loans.
Real Interest Rate
The rate of interest an investor expects to receive after allowing for inflation, representing the true cost of borrowing and the true yield on investing.
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