AP MacroeconomicsFinancial Sector & Loanable Funds
Nominal Interest Rate
The stated interest rate on a loan or investment without adjusting for inflation.
It is the rate banks advertise and borrowers pay before accounting for price level changes. Nominal rates include expectations of future inflation and are influenced by monetary policy. They do not reflect the true return on investment in terms of purchasing power.
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Loanable Funds →
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The Loanable Funds Market →
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