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Which law does the equation, = k represent?
Nominal Interest Rates
The interest rate before adjustments for inflation, representing the face value of borrowing costs.
Real Interest Rates
The interest rate adjusted for the effects of inflation, reflecting the true cost of borrowing and the real yield to savers and investors.
Real Interest Rate
The nominal interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield on investments.
Purchasing Power
The ability of an individual or group to buy goods or services with a given amount of money or currency.
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