Question
Bonus Question: The nominal interest rate is the accounting interest rate - the percentage by which the amount of dollars owed by a borrower to
Bonus Question: The nominal interest rate is the accounting interest rate - the percentage by which the amount of dollars owed by a borrower to a lender grows over time. While the real interest rate is the percentage by which the real purchasing power of the loan grows over time. in other words, the real interest rate is the nominal interest rate adjusted for the effect of inflation on the purchasing power of the outstanding loan. This economic relationship is named after O Ragnar Frisch O Milton Friedman O Robert Shiller
Irving Fisher
O Paul RomerBonus Question: The nominal interest rate is the accounting interest rate - the percentage by which the amount of dollars owed by a borrower to a lender grows over time. While the real interest rate is the percentage by which the real purchasing power of the loan grows over time. in other words, the real interest rate is the nominal interest rate adjusted for the effect of inflation on the purchasing power of the outstanding loan. This economic relationship is named after
O Ragnar Frisch
O Milton Friedman
O Robert Shiller
Irving Fisher
O Paul Romer
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
1st Edition
0131163604, 9780131163607
