nominal and real rate

This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.

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February 15, 2014 at 12:03 am #158824
aishaasad
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Hello Sir,
what should I write in the difference between nominal and real rate ? I am confused ? I am asking with the view point of written question
thanks in advance
February 15, 2014 at 7:27 am #158851
John Moffat
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The nominal rate is the actual rate which will change as the rate of inflation changes.
The real rate is the rate ignoring inflation – in theory this will stay constant (unless the level of risk changes)
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