- This topic has 1 reply, 2 voices, and was last updated 12 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
Please explain what is the link between intrest rates and inflation? And what is real and nominal rate of intrest?
There is an inverse relationship between interest rate and inflation. Therefore, inflation rate will decrease when the interest rate increases and vice versa.
Nominal rate is actual interest rate whereas real rate is ( Nominal rate + inflation ) – adjusted for the effect of inflation.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.