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What is the new growth theory?
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.
Nominal Interest Rate
The interest rate before adjustments for inflation; the stated or face interest rate on a loan or investment.
Real Rate of Interest
Real Rate of Interest is the interest rate that has been adjusted to remove the effects of inflation, providing a more accurate measure of the cost of borrowing.
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