I'm trying to understand finance and I'm curious about the concept of real interest rate. What exactly is it and how does it differ from the nominal interest rate?
8 answers
SamuraiBrave
Tue Nov 05 2024
Inflation plays a significant role in determining the real interest rate.
SolitudeSeeker
Tue Nov 05 2024
Investors also pay close attention to the real interest rate.
isabella_bailey_economist
Tue Nov 05 2024
To calculate the real interest rate, a simple mathematical operation is performed.
ShintoSpirit
Tue Nov 05 2024
The result of this subtraction is the real interest rate.
benjamin_brown_entrepreneur
Tue Nov 05 2024
For lenders, a higher real interest rate is beneficial.