Difference between revisions of "Real interest rate"
(Created page with "Real interest rate is the rate of interest with inflation subtracted. ==Definition== According to Principles of Economics by Timothy Taylor (3rd edition), :Real int...") |
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According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
:[[Real interest rate]]. The rate of interest with inflation subtracted. | :[[Real interest rate]]. The rate of interest with inflation subtracted. | ||
| − | + | According to [[Macroeconomics by Mankiw (7th edition)]], | |
| + | :[[Real interest rate]]. The return to saving and the cost of borrowing after adjustment for inflation. (Cf. nominal interest rate.) | ||
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] | ||
Latest revision as of 18:47, 2 July 2020
Real interest rate is the rate of interest with inflation subtracted.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Real interest rate. The rate of interest with inflation subtracted.
According to Macroeconomics by Mankiw (7th edition),
- Real interest rate. The return to saving and the cost of borrowing after adjustment for inflation. (Cf. nominal interest rate.)
