Real Interest Rates
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Nominal Interest Rate
price loans in today's prices
Real Interest Rate
price of loans adjusted for inflation
Quantity theory of money
Increase in Money Supply not offset by an increase in real output will lead to inflation
Federal Funds Rate
Interest banks charge other banks
Prime Rate
Best consumer rate
Discount Rate
Interest the FED charges other banks
Quantity theory of money equation
MV=PQ
Fisher Equation
r = i - π
