Real and Nominal Interest Rates
¡Supera tus tareas y exámenes ahora con Quizwiz!
Fisher Effect
Over time, real and nominal interest rates move in the same direction
Real
W/ effects of inflations
Nominal
W/o effects of inflation
Nominal interest rate equation
i=r+π
Fisher Equation
r=i-π
Real Interest Rates Equation
r=i-π