Macroeconomics
Nominal Interest Rate
Definition
What is Nominal Interest Rate?
An interest rateThe price of borrowing money or the return paid for lending it. stated without adjusting for inflationA sustained increase in the general price level, reducing the purchasing power of money..
Example in practice
How This Looks in Practice
A deposit paying 10% has a 10% nominal rate.
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Related Terms
Macroeconomics
Gross Domestic Product
The total market value of final goods and services produced within a country during a period.
MacroeconomicsReal GDP
Gross domestic product adjusted for changes in prices.
MacroeconomicsNominal GDP
Gross domestic product measured at current prices without adjusting for inflation.
Market SentimentRisk-On Market
A market environment in which investors favour higher-risk assets.