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Distinguish between nominal and real interest rates.Why are nominal interest rates often higher in third world countries?Also, define the effective interest rate.Provide three examples.

Distinguish between nominal and real interest rates.Why are nominal interest rates often higher in third world countries?Also, define the effective interest rate.Provide three examples.

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Nominal Interest Rate and Real Interest Rate 1 Nominal Interest Rate The nominal interest rate is the stated or advertised interest rate on a loan or ... blur-text-image

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